Question

Rajesh Kumar was unable to reconcile his Trial Balance as on 31st March 2014 and has opened a suspense account from the difference. Later on the following errors were discovered:-
(1) There were three compensating errors:-

(a) The total of Sales Return Book was overcast by ₹ 100.
(b) The total of one page of the Purchase Book was carried forward as ₹ 1,286 instead of ₹ 1,826.
(c) Goods purchased from C for ₹ 400 was debited to his account as ₹ 40.

(2) ₹ 425 paid for wages to workmen for making office table were debited to wages account.
(3) Rent paid ₹ 1,500 were posted to the credit of Rent account as ₹ 150.
(4) Cash received from Ghanshyam ₹ 500 were correctly recorded in cash book but were posted to his account as ₹ 50.
(5) ₹ 720 paid to Kamal has been debited to Kamlesh A/c as ₹ 520.
(6) The total of Purchase Return Book ₹ 2,500 was left unposted.
Pass rectifying entries and prepare Suspense A/c.

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Purchases A/c	Dr.		540
	To Sales Return A/c				100
	To C’s A/c				440
	(Sales return book overcasted, total of purchases book carried forward less, goods purchased debited to C’s Account, now rectified)
2)	Furniture A/c	Dr.		425
	To Wages A/c				425
	(Wages paid for making office table debited to Wages Account)
3)	Rent A/c	Dr.		1,650
	To Suspense A/c				1,650
	(Rent paid credited to Rent Account)
4)	Suspense A/c	Dr.		450
	To Ghanshyam’s A/c				450
	(Cash received from Ghanshyam posted as Rs 50 instead of Rs 500)
5)	Kamal’s A/c	Dr.		720
	To Kamlesh’s A/c				520
	To Suspense A/c				200
	(Amount paid to Kamal debited to Kamlesh’s Account)
6)	Suspense A/c	Dr.		2,500
	To Purchases Return A/c				2,500
	(Total of Purchases Return Book omitted to be posted)

Suspense Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Ghanshyam’s A/c		450	Difference as per Trial Balance (Balancing Figure)	1,100
Purchases Return A/c		2,500	Rent A/c	1,650
			Kamal’s A/c	200
		2,950		2,950