Question

There was an error in the Trial Balance of Mr. Steel on 31st March, 2015, and the difference in Books was carried to a Suspense Account. On going through the Books you find that:
(i) ₹ 5,400 received from Mr. A was posted to the debit of his account.
(ii) ₹ 1,000 being purchases return were posted to the debit of Purchases Account.
(iii) Discount received ₹ 2,000 was posted to the debit of Discount Account.
(iv) ₹ 2,740 paid for Repairs to Motor Car was debited to Motor Car Account as ₹ 1,740.
(v) ₹ 4,000 paid to B was debited to A's Account.
Give Journal Entries to rectify the above errors and ascertain the amount transferred to Suspense Account on 31st March, 2015 by showing the Suspense Account, assuming that the Suspense Account is balanced after the above corrections.

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Suspense A/c	Dr.		10,800
	To A’s A/c				10,800
	(Amount received from Mr. A posted to the debit of his account)
ii)	Suspense A/c	Dr.		2,000
	To Purchases Return A/c				1,000
	To Purchases A/c				1,000
	(Purchases return debited to Purchases Account)
iii)	Suspense A/c	Dr.		4,000
	To Discount A/c				4,000
	(Discount received debited to Discount Account)
iv)	Repairs A/c	Dr.		2,740
	To Motor Car A/c				1,740
	To Suspense A/c				1,000
	(Repairs made to motor car debited to Motor Car Account)
v)	B’s A/c	Dr.		4,000
	To A’s A/c				4,000
	(Amount paid to B debited to A’s Account)

Suspense Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
A’s A/c		10,800	Difference as per Trial Balance (Balancing Figure)	15,800
Purchases Return A/c		1,000	Repairs A/c	1,000
Purchases A/c		1,000
Discount A/c		4,000
		16,800		16,800