Question

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.

(i) Depreciation provided on machinery Rs. 4,000 was not posted to depreciation account.

(ii) Bad debts written-off Rs. 5,000 were not posted to debtor's account.

(iii) Discount allowed to a debtor Rs. 100 on receiving cash from him was not posted to discount allowed account.

(iv) Goods withdrawn by proprietor for personal use Rs. 800 were not posted to drawings account.

(v) Bills receivable for Rs. 2,000 received from a debtor was not posted to bills receivable account.

Answer 1

Rectification Entries in Journal

$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{LF}& \text{Amt(Dr)}& \text{Amt(Cr)}\\ \text{(i)}& \text{Depreciation A/c}\text{Dr}& & \text{4,000}& \\ & \text{To Suspense A/c}& & & \text{4,000}\\ & \text{(Depreciation on machinery was not}& & & \\ & \underset{–}{\text{posted to depreciation account, now rectified)}}& & & \\ \text{(ii)}& \text{Suspense A/c}\text{Dr}& & \text{5,000}& \\ & \text{To Debtor's A/c}& & & \text{5,000}\\ & \text{(Bad debts written-off were not posted}& & & \\ & \underset{–}{\text{to debtor's account, now rectified)}}& & & \\ \text{(iii)}& \text{Discount Allowed A/c}\text{Dr}& & \text{100}& \\ & \text{To Suspense A/c}& & & \text{100}\\ & \text{(Discount allowed to customer, not}& & & \\ & \underset{–}{\text{posted to discount account, now rectified)}}& & & \\ \text{(iv)}& \text{Drawings A/c}\text{Dr}& & \text{800}& \\ & \text{To Suspense A/c}& & & \text{800}\\ & \text{(Goods withdrawn for personal use, not}& & & \\ & \underset{–}{\text{recorded in drawings account, now rectified)}}& & & \\ \text{(v)}& \text{Bills Receivable A/c}\text{Dr}& & \text{2,000}& \\ & \text{To Suspense A/c}& & & \text{2,000}\\ & \text{(Bills receivable from a debtor was not}& & & \\ & \text{recorded in bills receivable account, now rectified)}& & & \end{array}$

Suspense A/c

$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt(Rs)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt(Rs.)}\\ & \text{Debtor's A/c}& & \text{5,000}& & \text{Depreciation A/c}& & \text{4,000}\\ & \text{Balance b/d}& & \text{1,900}& & \text{Discount Allowed A/c}& & \text{100}\\ & & & & & \text{Drawings A/c}& & \text{800}\\ & & & & & \text{Bills Receivable A/c}& & \text{2,000}\\ & & & \underset{–}{\overline{6,900}}& & & & \underset{–}{\overline{6,900}}\end{array}$