Question

Trial balance of John did not agree. He put the difference to suspense account and discovered the following errors.

(a) In the sales book for the month of January total of page 2 was carried forward to page 3 as Rs. 1,000 instead of Rs. 1200 and total of page 6 was carried forward to page 7 as Rs. 5,600 instead of Rs. 5,000.

(b) Wages paid for the installation of machinery Rs. 500 was posted to wages account as Rs. 50.

(c) Machinery purchased from R and Co for Rs. 10,000 on credit was entered in purchase book as Rs. 6,000 and posted there from to R and Co as Rs. 1,000.

(d) Credit sates to Mohan Rs. 5,000 were recorded in purchase book.

(e) Goods returned to Ram Rs. 1,000 were recorded in the sales book.

(f) Credit purchase from S and Co for Rs. 6,000 were recorded in the sales book. However, S and Co were correctly credited.

(g) Credit purchase from M and Co Rs. 6,000 were recorded in sales book as Rs. 2,000 and posted therefrom to the credit of M and Co as Rs. 1,000.

(h) Credit sales to Raman Rs. 4,000 posted to the credit of Raghvan as Rs. 1,000.

(i) Bill receivable for Rs. 1,600 from Noor was dishonoured and posted to the debit of allowances account.

(j) Cash paid to Mani Rs. 5,000 against our acceptance was debited to Manu.

(k) Old furniture sold for Rs. 3,000 was posted to sales account as Rs. 1,000.

(l) Depreciation provided on furniture Rs. 800 was not posted.

(m) Material Rs. 10.000 and wages Rs. 3,000 were used for the construction of a building. No adjustment was made in the books.

Rectify the errors and prepare suspense to ascertain the difference in trial balance.

Answer 1

$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{LF}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ \text{(a)}& \text{Sales A/c}& \text{Dr}& & 400& \\ & \text{To Suspense A/c}& & & & 400\\ & \text{(The net balance of sales book overcast by}& & & & \\ & \text{Rs. 400, now rectified}& & & & \\ & \underset{–}{}& & & & \\ \text{(b)}& \text{Machinery A/c}& \text{Dr}& & 500& \\ & \text{To Wages A/c}& & & & 50\\ & \text{To Suspense A/c}& & & & 450\\ & \text{(Wages paid for installation of machinery}& & & & \\ & \text{Rs. 500, wrongly posted to wages as Rs. 50, now}& & & & \\ & \text{rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(c)}& \text{Machinery A/c}& \text{Dr}& & 10,000& \\ & \text{Suspense A/c}& \text{Dr}& & 5,000& \\ & \text{To Purchase A/c}& & & & 6,000\\ & \text{To R and Co}& & & & 9,000\\ & \text{(Purchase of machinery from R and Co Rs. 10,000}& & & & \\ & \text{wrongly posted to purchase account as Rs. 6,000 and}& & & & \\ & \text{posted to R and Co account as Rs. 1,000, now rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(d)}& \text{Mohan's A/c}& \text{Dr}& & 10,000& \\ & \text{To Sales A/c}& & & & 5,000\\ & \text{To Purchase A/c}& & & & 5,000\\ & \text{(Goods sold to Mohan on credit wrongly}& & & & \\ & \text{posted in purchase account, now rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(e)}& \text{Sales A/c}& \text{Dr}& & 1,000& \\ & \text{To Purchase Return A/c}& & & & 1,000\\ & \text{(Goods return to Ram, wrongly recorded as}& & & & \\ & \text{sales to Ram, now rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(f)}& \text{Purchase A/c}& \text{Dr}& & 6,000& \\ & \text{Sales A/c}& \text{Dr}& & 6,000& \\ & \text{To Suspense A/c}& & & & 12,000\\ & \text{(Credit purchase was wrongly recorded in}& & & & \\ & \text{sales book only, now rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(g)}& \text{Purchase A/c}& \text{Dr}& & 6,000& \\ & \text{Sales A/c}& \text{Dr}& & 2,000& \\ & \text{To M and Co}& & & & 5,000\\ & \text{To Suspense A/c}& & & & 3,000\\ & \text{(Purchased goods from M and Co Rs. 6,000}& & & & \\ & \text{wrongly recorded in sales book as Rs. 2,000 and}& & & & \\ & \text{credited to M and Co Account Rs. 1,000, now rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(h)}& \text{Raman's A/c}& \text{Dr}& & 4,000& \\ & \text{Raghavan}& \text{Dr}& & 1,000& \\ & \text{To Suspense A/c}& & & & 5,000\\ & \text{(Goods sold to Raman for Rs. 4,000, wrongly}& & & & \\ & \text{recorded to the credit of Raghavan's Account as Rs.}& & & & \\ & \text{1,000, now rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(i)}& \text{Noor's A/c}& \text{Dr}& & 1,600& \\ & \text{To Allowance A/c}& & & & 1,600\\ & \text{(Bill dishonoured received from Noor, wrongly}& & & & \\ & \text{debited to allowance account, now rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(j)}& \text{Bills Payable A/c}& \text{Dr}& & 5,000& \\ & \text{To Manu's A.c}& & & & 5,000\\ & \text{(Amount of bills payable paid to Manu,}& & & & \\ & \text{wrongly debited to Manu's Account, now rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(k)}& \text{Sales A/c}& \text{Dr}& & 1,000& \\ & \text{Suspense A/c}& \text{Dr}& & 2,000& \\ & \text{To Furniture A/c}& & & & 3000\\ & \text{(Old furniture sold for Rs. 3,000, wrongly posted}& & & & \\ & \text{to sales book as Rs. 1000, now rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(l)}& \text{Depreciation A/c}& \text{Dr}& & 800& \\ & \text{To Furniture A/c}& & & & 800\\ & \text{(Depreciation on furniture was not posted,}& & & & \\ & \text{now rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(m)}& \text{Building A/c}& \text{Dr}& & 13,000& \\ & \text{To Purchase A/c (Material)}& & & & 10,000\\ & \text{To Wages A/c}& & & & 3,000\\ & \text{(Rs. 10,800 material and Rs. 3,000 wages used for}& & & & \\ & \text{construction of building not recorded, now rectified)}& & & & \end{array}$
$\begin{array}{cccccccc}\text{Dr}& & & & \text{Suspense Account}& & & \text{Cr}\end{array}$

$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. Rs}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt. Rs}\\ \text{(c)}& \text{Purchase A/c}& & 5,000& \text{(a)}& \text{Sales A/c}& & 400\\ \text{(k)}& \text{Furniture A/c}& & 2,000& \text{(b)}& \text{Machinery A/c}& & 450\\ & \text{balance c/d}& & 13,850& \text{(f)}& \text{Purchase A/c}& & 6,000\\ & & & & & \text{Sales A/c}& & 6,000\\ & & & & \text{(g)}& \text{Purchase A/c}& & 3,000\\ & & & & \text{(h)}& \text{Raman's A/c}& & 4,000\\ & & & \underset{–}{}& & \text{Raghavan A/c}& & \underset{–}{1,000}\\ & & & \underset{–}{20,850}& & & & \underset{–}{20,850}\end{array}$