CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
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.

Open in App
Solution

Rectification Entries in Journal.

DateParticularsLFAmt. (Dr)Amt. (Cr)(a)Suspense A/cDr2,000 To Ravish A/c2,000(Cash received from Ravish Rs. 8,000wrongly posted to Ravish account, nowrectified) –––––––––––––––––––––––––––––––––––––––––––––––––––––––––(b)Suspense A/cDr1,000 To Return Inwards A/c1,000(Return inwards book overcast byRs. 1,000, now rectified) ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––(c)Suspense A/cDr10,000 To Sales A/c10,000(Sales of Rs. 10,000 was not posted tosales account, now rectified) ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––(d)Purchase A/cDr7,000Sales A/cDr7,000 To Suspense A/c14,000(Purchase figure of Rs. 7,000 was wronglyposted in sales book now rectified ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––(e)Machinery A/cDr10,000 To Purchase A/c5,000 To Suspense A/c5,000(Purchase of machinery for Rs. 10,000recorded through purchase account asRs. 5,000, now rectified)
Dr Suspense Account Cr

DateParticularsJFAmt. RsDateParticularsJFAmt. RsBalance b/d6,000(d)Purchase A/c7,000(a)Ravish2,000Sales A/c7,000(b)Return Inwards A/c1,000(e)Machinery A/c5,000(c)Sales A/c10,000–––––– –––19,000––––––19,000––––––


flag
Suggest Corrections
thumbs-up
18
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Types of Index Numbers
STATISTICS
Watch in App
Join BYJU'S Learning Program
CrossIcon