Question

Trial Balance includes an item as Suspense account on the debit side at Rs 109. On investigation. You find the following errors.

1) Sales day book has been overcast by Rs 250.
2) Goods returned by Ram Rs 75 has been posted to his personal account only.
3) Goods worth Rs 160 returned to Ram posted to his personal account only.
4) Shakharam paid us a cheque of Rs 95 has been posted to his account as Rs 59.
5) Paid cheque to Sardar Rs 130 has been posted to his account only.
6) Rs 700 were due from K. Ashwin written off as bad debts. After wards a final dividend of Rs 150 received from his estate has not been posted.
Give journal entries to rectify the above, and also show now the suspense account will appear.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1	Sales A/c	Dr.		250
	To Suspense A/c				250
	(Sales day book overcasted by Rs 250, now rectified)
2	Sales Return A/c	Dr.		75
	To Suspense A/c				75
	(Sales Return was not recorded, now rectified)
3	Suspense A/c	Dr.		160
	To Purchases Return A/c				160
	(Purchases Return was not recorded, now rectified)
4	Suspense A/c	Dr.		36
	To Shakharam				36
	(Cheque received from Shakharam was recorded as Rs 59 instead of Rs 95, now rectified)
5	Suspense A/c	Dr.		130
	To Bank A/c				130
	(Bank Account was not credited, now rectified)
6	Cash A/c	Dr.		150
	To Bad Debts Recovered A/c				150
	(Bad debts recovered from K.Ashwin was not recorded in the books, now rectified)

Suspense Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
		Balance b/d		109		Sales A/c		250
		Purchases Return A/c		160		Sales Return A/c		75
		Shakharam A/c		36		Balance c/d		110
		Bank A/c		130
				435				435