Question

The Trial Balance of M/s. Gupta & Sons shows a difference of ₹ 52,200. To prepare the Final Account on 31^st March, 2009, this difference is placed in a Suspense Account. Afterwards the following errors were disclosed. Pass the necessary entries to rectify them and show the Suspense Account.
(i) Purchases Book total had been undercasted by ₹ 20,000.
(ii) A cheque received from Vasudev for ₹ 7,800 had been debited in the Cash Book but not posted in Vasudev’s Personal Account.
(iii) Returns Outward Book had been overcasted by ₹ 10,000.
(iv) Goods returned by Yash Pal worth ₹ 15,000 have been entered in Returns Outward Book. However, Yash Pal’s Account is correctly posted.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Purchases A/c	Dr.		20,000
	To Suspense A/c				20,000
	(Purchases was undercast, now rectified)
(ii)	Suspense A/c	Dr.		7,800
	To Vasudev				7,800
	(Cheque received from Vasudev was not recorded in his account, now recorded)
(iii)	Return Outwards A/c	Dr.		10,000
	To Suspense A/c				10,000
	(Return Outwards Book was overcast, now rectified)
(iv)	Return Inward A/c	Dr.		15,000
	Return Outwards A/c	Dr.		15,000
	To Suspense A/c				30,000
	(Goods returned by Yash Pal was wrongly entered in the Return Outwards Book but Correctly posted to his account, now rectified)

Suspense Account
Dr.	Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
	Difference in Trial Balance	52,200	(i)	Suspense	20,000
(ii)	Vasu Dev	7,800	(iii)	Return Outwards	10,000
			(iv)	Return Inwards	15,000
				Return Outwards	15,000
		60,000			60,000