Question

The Trial Balance of M/s. Gupta & Sons shows a difference of ₹ 52,200. To prepare the Final Account on 31^st March, 2019, 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 (₹)	Credit Amount (₹)
2019
(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 (₹)	Date	Particulars	Amount (₹)
	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