Question

There was a difference of ₹ 720 in the Trial Balance which has been transferred to the credit side of the Suspense Account. Pass the rectifying entries and prepare a Suspense Account to rectify the following errors:
(i) An amount of ₹ 375 now posted on the debit side of the Commission Account instead of ₹ 275.
(ii) Credit amount of ₹ 260 posted to the debit of the Personal Account as ₹ 360.
(iii) Goods sold to Surinder recorded in Purchases Book ₹ 300.
(iv) D’s bill for erection of godown at a cost of ₹ 1,200 has been charged to the Repairs Account.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Suspense A/c	Dr.		100
	To Commission A/c				100
	(Commission Rs 275 was debited as Rs 375, now rectified)
(ii)	Suspense A/c	Dr.		620
	To Personal Account				620
	(Credit amount Rs 260 was wrongly posted to the debit Rs 360 in Personal Account, now rectified)
(iii)	Surinder	Dr.		600
	To Sales A/c				300
	To Purchases A/c				300
	(Goods sold to Surinder was wrongly recorded in the Purchases Book, now rectified)
(iv)	Building A/c	Dr.		1,200
	To Repair A/c				1,200
	(Cost of erection of Godown Rs 1,200 was debited to Repair Account, now rectified)

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Suspense Account
Dr.	Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
(i)	Commission	100		Balance b/d	720
(ii)	Personal Account	620
		720			720