Question

The trial balance of Anuj did not agree. It showed an excess credit of Rs. 6,000. He put the difference to a suspense account. He discovered the following errors.

(a) Cash received from Ravish Rs. 8,000 posted to his account as Rs. 6,000

(b) Return inwards book overcast by Rs. 1,000

(c) Total of sales book Rs. 10,000 was not posted to sales account.

(d) Credit purchase from Nanak Rs. 7,000 were recorded in the sales book. However, Nanak's account was correctly credited.

(e) Machinery purchased for Rs. 10,000 was posted to purchase account as Rs. 5,000

Rectify the errors and prepare a suspense account.

Answer 1

Rectification Entries in Journal.

$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{LF}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ \text{(a)}& \text{Suspense A/c}& \text{Dr}& & 2,000& \\ & \text{To Ravish A/c}& & & & 2,000\\ & \text{(Cash received from Ravish Rs. 8,000}& & & & \\ & \text{wrongly posted to Ravish account, now}& & & & \\ & \text{rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(b)}& \text{Suspense A/c}& \text{Dr}& & 1,000& \\ & \text{To Return Inwards A/c}& & & & 1,000\\ & \text{(Return inwards book overcast by}& & & & \\ & \text{Rs. 1,000, now rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(c)}& \text{Suspense A/c}& \text{Dr}& & 10,000& \\ & \text{To Sales A/c}& & & & 10,000\\ & \text{(Sales of Rs. 10,000 was not posted to}& & & & \\ & \text{sales account, now rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(d)}& \text{Purchase A/c}& \text{Dr}& & 7,000& \\ & \text{Sales A/c}& \text{Dr}& & 7,000& \\ & \text{To Suspense A/c}& & & & 14,000\\ & \text{(Purchase figure of Rs. 7,000 was wrongly}& & & & \\ & \text{posted in sales book now rectified}& & & & \\ & \underset{–}{}& & & & \\ \text{(e)}& \text{Machinery A/c}& \text{Dr}& & 10,000& \\ & \text{To Purchase A/c}& & & & 5,000\\ & \text{To Suspense A/c}& & & & 5,000\\ & \text{(Purchase of machinery for Rs. 10,000}& & & & \\ & \text{recorded through purchase account as}& & & & \\ & \text{Rs. 5,000, now rectified)}& & & & \end{array}$
$\begin{array}{cccccccc}\text{Dr}& & & & \text{Suspense Account}& & & \text{Cr}\end{array}$

$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. Rs}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt. Rs}\\ & \text{Balance b/d}& & 6,000& \text{(d)}& \text{Purchase A/c}& & 7,000\\ \text{(a)}& \text{Ravish}& & 2,000& & \text{Sales A/c}& & 7,000\\ \text{(b)}& \text{Return Inwards A/c}& & 1,000& \text{(e)}& \text{Machinery A/c}& & 5,000\\ \text{(c)}& \text{Sales A/c}& & \underset{–}{10,000}& & & & \underset{–}{}\\ & & & \underset{–}{19,000}& & & & \underset{–}{19,000}\end{array}$