Question

Pass journal entries to rectify the following errors. The trial balance had ₹ 1,260 excess credit. The difference has been posted to a suspense account:
(i) The total of returns inwards book has been cast ₹ 2,000 short.
(ii) The purchase of an office table costing ₹ 6,000 has been passed through the purchases day book.
(iii) A sum of ₹ 7,500 paid to workman for wages for making showcases has been charged to wages account.
(iv) A purchase of ₹ 1,340 has been posted to the creditor's account as ₹ 600.
(v) A cheque of ₹ 4,000 received from Y has been dishonoured; it has been posted to the debit of allowances account.
After passing journal entries, prepare the suspense account.

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Sales Return A/c	Dr.		2,000
	To Suspense A/c				2,000
	(Undercasting of Sales Return Book)
ii)	Furniture A/c	Dr.		6,000
	To Purchases A/c				6,000
	(Purchase of office table recorded as purchases)
iii)	Furniture A/c	Dr.		7,500
	To Wages A/c				7,500
	(Payment made for making showcases debited to Wages Account)
iv)	Suspense A/c	Dr.		740
	To Creditor’s A/c				740
	(Purchases recorded with less amount in Creditor’s Account)
v)	Y’s A/c	Dr.		4,000
	To Allowances A/c				4,000
	(Cheque received from Y dishonoured and debited to Allowances Account)

Suspense Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Difference in Trial Balance		1,260	Sales Return A/c	2,000
Creditor’s A/c		740
		2,000		2,000