Question

Trial Balance of a bookkeeper shows an excess of debits over credits by ₹ 261. This difference is placed in a Suspense Account to facilitate books closure. Later on the following errors were discovered:
(i) A credit item of ₹ 349 has been debited to a Personal Account as ₹ 439.
(ii) A sum of ₹ 625 written off from fixtures as depreciation has not been posted to the Depreciation Account.
(iii) ₹ 9,000 paid for furniture bought have been charged to the Purchases Account.
(iv) A discount allowed to a customer has been credited to him as ₹ 145 in place of ₹ 154.
(v) A sale of ₹ 594 was posted as ₹ 495 in the Sales Account.
(vi) The total of Returns Inward Book has been added ₹ 10 short.
Pass the Journal entries to correct these errors and prepare the Suspense Account.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Suspense A/c	Dr.		788
	To Personal A/c				788
	(Credit item was wrongly debited to a Personal Account, now rectified)
(ii)	Depreciation A/c	Dr.		625
	To Suspense A/c				625
	(Depreciation on Fixtures was not posted to Depreciation Account, now rectified)
(iii)	Furniture A/c	Dr.		9,000
	To Purchases A/c				9,000
	(Purchase of Furniture was wrongly charged to Purchases Account, now rectified)
(iv)	Suspense A/c	Dr.		9
	To Customer				9
	(Discount allowed to Customer Rs 154 was Credited wrongly as Rs 145, now rectified)
(v)	Suspense A/c	Dr.		99
	To Sales A/c				99
	(Sale of Rs 594 was wrongly posted as Rs 495, now rectified)
(vi)	Return Inwards A/c	Dr.		10
	To Suspense A/c				10
	(Return Inwards Book was undercasted, now rectified)

Suspense Account
Dr.	Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
(i)	Personal	788		Balance b/d	261
(iv)	Customer	9	(ii)	Depreciation	625
(v)	Sales	99	(vi)	Return Inwards	10
		896			896