The Trial Balance of Govindrao is short of credit by Rs 1250. This difference is shown as ‘Suspense’ account in the credit column of the Trial Balance. on scrutiny of accounts the following errors were traced out.

1) The purchase journal was overcast by Rs 250.
2) The periodical total of the sales book was cast short by Rs 1500.
3) The total of return inward book for the month was added short by Rs 100.
4) The total receipt side of the cash book was taken short by Rs 300 with result that cash balance was shown as Rs 1700 instead of Rs 2000.
5) Commission of Rs 100 received from Trupti was credited both to Commission account and to Trupti’s account.

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Solution

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

1

Suspense A/c

Dr.

250

To Purchase A/c

250

(Purchase Journal overcasted, now rectified)

2

Suspense A/c

Dr.

1,500

To Sales A/c

1,500

(Periodical total of sales book undercasted, now rectified)

3

Return Inward A/c

Dr.

100

To Suspense A/c

100

(Total of Return Inward Book undercasted, now rectified)

4

Cash A/c

Dr.

300

To Suspense A/c

300

(Receipt side of the cash book undercasted by Rs 300, now rectified)

5

Trupti

Dr.

100

To Suspense A/c

100

(Trupti’s Account was wrongly credited, now rectified)

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Similar questions

Rectify the following errors by opening a suspense account credit side of the trial balance was cast short and the difference of trial account.

1) Paid Rs 700 to Nishigandha was debited to pritigantha account.
2) Total of sales book cast short by Rs 175.
3) Purchased goods casting Rs 690 on credit from shrawani was recorded in the purchase book but failed to credit shrawani account.
4) Total of purchase book was Overcast by Rs 95.
5) Received Rs 548 from Firoz on account was correctly recorded in cash account but Firoz account was credited by Rs 584.
6) Paid Advertisement Expenses amounted to Rs 350 was wrongly recorded twice in the Advertisement account.

Trial balance of Anuj did not agree. It showed an excess credit of Rs 6,000.

He put the difference to suspense account. He discovered the following erro Rs

(a)	Cash received from Ravish Rs 8,000 posted to his account as Rs 6,000.
(b)	Returns inwards book overcast by Rs 1,000.
(c)	Total of sales book Rs 10,000 was not posted to Sales account.
(d)	Credit purchases from Nanak Rs 7,000 were recorded in sales Book. However, Nanak’s account was correctly credited.
(e)	Machinery purchased for Rs 10,000 was posted to purchases account as Rs 5,000. Rectify the errors and prepare suspense account.

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

(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.

Trial balance of Sagar did not agree. It showed an excess credit Rs 7,550. Sagar put the difference to suspense account. He located the following errors-

1) Sales return book was overcast by Rs 1,200.
2) Purchases book was undercast by Rs 750.
3) Goods returned to Mahesh Rs 1000 were recorded through sales book.
4) Credit purchase from Mahadev Rs 6,000 were recorded through sales book.
5) Credit purchase from Damodhar Rs 4,000 were recorded through sales book. However, Damodhar’s account was correctly credited.
6) Salary paid Rs 3,500 was debited to employee’s personal account.

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.

(a) Credit sales to Mohan Rs. 7000 were recorded in purchase book. However, Mohan's account was correctly debited.

(b) Credit purchase from Rohan Rs. 9000 were recorded in the sales book. However, Rohan's account was correctly credited.

(c) Goods returned to Rakesh Rs. 4000 were recorded in sales return book. However, Rakesh's account was correctly debited.

(d) Goods returned from Mahesh Rs. 1000 were recorded through purchase return book. However, Mahesh's account was correctly credited.

(e) Goods returned to Naresh Rs. 2000 were recorded through purchase book. However, Naresh's account was correctly debited.

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Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1	Suspense A/c	Dr.		250
	To Purchase A/c				250
	(Purchase Journal overcasted, now rectified)

2	Suspense A/c	Dr.		1,500
	To Sales A/c				1,500
	(Periodical total of sales book undercasted, now rectified)

3	Return Inward A/c	Dr.		100
	To Suspense A/c				100
	(Total of Return Inward Book undercasted, now rectified)

4	Cash A/c	Dr.		300
	To Suspense A/c				300
	(Receipt side of the cash book undercasted by Rs 300, now rectified)

5	Trupti	Dr.		100
	To Suspense A/c				100
	(Trupti’s Account was wrongly credited, now rectified)