Question

The books of Ramesh did not agree. The difference of ₹ 12,700 in trial balance was placed to the debit of suspense account. Subsequently, the following errors were located. Pass journal entries to rectify the errors and prepare the suspense account:
(i) The total of the purchases returns book, ₹ 2,100 has not been posted.
(ii) A sale of ₹ 4,300 to Ram has been credited to his account as ₹ 3,400.
(iii) A purchase from Suresh for ₹ 4,000 has been entered in the sales book. However, Suresh has been correctly credited with ₹ 4,000.
(iv) Old furniture sold on credit for ₹ 5,400 has been recorded in the sales account as ₹ 4,500.
(v) Goods taken away by Ramesh, the proprietor for his personal use worth ₹ 750 has not been recorded in the books of accounts at all.

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Suspense A/c	Dr.		2,100
	To Purchases Returns A/c				2,100
	(Total of Purchases Return Book omitted to be posted)
ii)	Ram’s A/c	Dr.		7,700
	To Suspense A/c				7,700
	(Sale of Rs 4,300 to Ram credited to his account as Rs 3,400)
iii)	Purchases A/c	Dr.		4,000
	Sales A/c	Dr.		4,000
	To Suspense A/c				8,000
	(Purchases were recorded in Sales Book)
iv)	Suspense A/c	Dr.		900
	Sales A/c	Dr.		4,500
	To Furniture A/c				5,400
	(Sale of furniture of Rs 5,400 recorded in Sales Account as Rs 4,500)
v)	Drawings A/c	Dr.		750
	To Purchases A/c				750
	(Goods taken by the proprietor omitted to be recorded)

Suspense Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Difference in Trial Balance		12,700	Purchases A/c	4,000
Purchases Return A/c		2,100	Sales A/c	4,000
Furniture A/c		900	Ram’s A/c	7,700
		15,700		15,700