Question

Rectify the following errors found in the books of Mr. B. Trial Balance had ₹ 930 excess credit. The difference has been posted to a Suspense Account:
(i) The total of Returns Inward Book has been cast ₹ 1,000 short.
(ii) The purchase of an office table costing ₹ 3,000 has been passed through Purchases Book.
(iii) ₹ 3,750 paid for wages to workmen for making showcases had been charged to the Wages Account.
(iv) A purchases of ₹ 670 had been posted to the Creditors' Account as ₹ 600.
(v) A cheque for ₹ 2,000 received from Mr. P.C. Joshi had been dishonoured and was passed to the debit of the Allowances Account.
(vi) An amount of ₹ 15,720 due from Prasad written off as had in a previous year, was recovered and credited to the Personal Account of Prasad.
After rectification reflect the transactions in the Suspense Account.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Return Inwards A/c	Dr.		1,000
	To Suspense A/c				1,000
	(Return Inwards was undercast, now rectified)
(ii)	Furniture A/c	Dr.		3,000
	To Purchases A/c				3,000
	(Purchase of Office Furniture was wrongly entered in Purchases Book , now rectified)
(iii)	Furniture A/c	Dr.		3,750
	To Wages A/c				3,750
	(Wages paid for making showcases was wrongly charged to Wages Account, now rectified)
(iv)	Suspense A/c	Dr.		70
	To Creditors				70
	(Purchase of Rs 670 was Credited to Creditors as Rs 600, now rectified)
(v)	Mr. P. C Joshi	Dr.		2,000
	To Allowances A/c				2,000
(vi)	(Mr. P. C. Joshi Cheque was dishonoured and was wrongly debited to Allowances Account, now rectified) Prasad Dr. To Bad Debts Recovered A/c (Bad debts recovered from Prasad wrongly credited to his personal account, now rectified)			15,720	15,720

Suspense Account
Dr.	Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
	Balance b/d	930	(i)	Return Inwards	1,000
(iv)	Creditors	70
		1,000			1,000