Question

The accountant of X prepared the Trial Balance at the end of the year on 31st March, 2015. But there was a difference and the accountant put the difference in a Suspense Account. Rectify the following errors found and prepare the Suspense Account:
(a) The total of the returns outward book ₹ 420 has not been posted in the ledger.
(b) A purchase of ₹ 350 from Y has been entered in the sales book. However Y's Account has been correctly entered.
(c) A sale of ₹ 390 to Z has been credited to his account ₹ 290.
(d) Old furniture sold for ₹ 5,400 had been posted as ₹ 4,500 in Sales Account.
(e) Goods taken by the proprietor ₹ 500 have not been entered in the books at all.

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Suspense A/c	Dr.		420
	To Purchases Return A/c				420
	(Total of the returns outward book has not been posted to ledger)
b)	Purchases A/c	Dr.		350
	Sales A/c	Dr.		350
	To Suspense A/c				700
	(Purchases from Y has been entered in the Sales Book)
c)	Z’s A/c	Dr.		680
	To Suspense A/c				680
	(Sale to Z of Rs 390 has been credited to his account as Rs 290)
d)	Sales A/c	Dr.		4,500
	Suspense A/c	Dr.		900
	To Furniture A/c				5,400
	(Sale of furniture of Rs 5,400 had been entered as Rs 4,500 in Sales Account)
e)	Drawings A/c	Dr.		500
	To Purchases A/c				500
	(Goods taken by the proprietor omitted to be recorded)

Suspense Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Difference as per Trial Balance (Balancing Figure)		60	Purchases A/c	350
Purchases Return A/c		420	Sales A/c	350
Furniture A/c		900	Z’s A/c	680
		1,380		1,380