Question

There was a difference in the Trial Balance of M/s. Jain & Sons, prepared for the year ended 31st March, 2009. The accountant put the difference in Suspense Account.
The following errors were found:
(i) Purchases Return Book total ₹ 400 has not been posted to Ledger Account.
(ii) ₹ 5,100 spent on legal expense for the newly acquired Building was debited to the Building Account as ₹ 1,500.
(iii) A sale of ₹ 6,540 to Rajat has been credited to his account.
Rectify the errors and show the Suspense Account with Nil closing balance.

Answer 1

Books of M/s Jain & Sons Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Suspense A/c	Dr.		400
	To Purchases Return A/c				400
	(Purchases Return Book total was not posted to Purchase Return Account, now rectified)
(ii)	Building A/c	Dr.		3,600
	To Suspense A/c				3,600
	(Legal expenses Rs 5,100 on acquiring a Building was recorded as Rs 1,500 in Building Account, now rectified)
(iii)	Rajat	Dr.		13,080
	To Suspense A/c				13,080
	(Sale of Rajat Rs 6,540 was posted wrongly to Credit of his account, now rectified)

Suspense Account
Dr.	Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
(i)	Purchases Return	400	(ii)	Building	3,600
	Difference in the Trial Balance	16,280	(iii)	Rajat	13,080
		16,680			16,680