Question

The Trial Balance prepared by a Book-keeper showed a difference of ₹ 1,006 which was placed in a newly opened Suspense Account and carried forward to the next year, when the following errors were discovered:-
(i) Goods purchased for ₹ 99 had been posted to the credit of the supplier as ₹ 990.
(ii) ₹ 75 received as discount from a creditor was duly entered in his account but it was omitted to be posted to discount account.
(iii) Sale of Furniture for ₹ 1,400 had been entered in sales book.
(iv) ₹ 900 due from a customer were omitted to be taken to the Schedule of sundry debtors.
(v) Goods of the value of ₹ 3,000 returned by a customer were taken into the stock but no entry was made in the books.
(vi) ₹ 355 entered in the Sales Returns book had been posted to the debit of the customer who returned the goods.
Give necessary Journal entries to rectify the above errors and prepare suspense account.

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Supplier’s A/c	Dr.		891
	To Suspense A/c				891
	(Goods purchased of Rs 99 on credit posted to the credit side of Supplier’s Account as Rs 990)
ii)	Suspense A/c	Dr.		75
	To Discount Received A/c				75
	(Discount received from a creditor omitted to be posted to Discount Account)
iii)	Sales A/c			1,400
	To Furniture A/c				1,400
	(Sale of furniture recorded in Sales Book)
iv)	Sundry Debtors A/c	Dr.		900
	To Suspense A/c				900
	(Amount due from a customer omitted to be included in sundry debtors)
v)	Sales Return A/c	Dr.		3,000
	To Customer’s A/c				3,000
	(Goods returned by a customer were taken into stock but omitted to be recorded)
vi)	Suspense A/c	Dr.		710
	To Customer’s A/c				710
	(Goods returned by a customer posted to the debit side of his/her account)

Suspense Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Difference in Trial Balance		1,006	Supplier’s A/c	891
Discount Received A/c		75	Sundry Debtors A/c	900
Customer’s A/c		710
		1,791		1,791