Question

Trial balance of Kohli did not agree and showed an excess debit of Rs. 16300. He put the difference to a suspense account and discovered the following errors.

(a) Cash received from Rajat Rs. 5,000 was posted to the debit of Kamal as Rs. 6,000.

(b) Salaries paid to an employee Rs. 2,000 were debited to his personal account as Rs. 1,200.

(c) Goods were withdrawn by the proprietor for personal use Rs. 1000 were credited to sales account as Rs. 1,600.

(d) Depreciation provided on machinery Rs. 3,000 was posted to machinery account as Rs. 300.

(e) Sale of an old car for Rs. 10,000 was credited to sales account as Rs. 6,000.

Rectify the errors and prepare a suspense account.

Answer 1

$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{LF}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ \text{(a)}& \text{Suspense A/c}& \text{Dr}& & 11,000& \\ & \text{To Rajat}& & & & 5,000\\ & \text{To Kamal}& & & & 6,000\\ & \text{(Cash received from Rajat Rs. 5,000, wrongly}& & & & \\ & \text{debited to Kamal’s Account as Rs. 6,000, now rectified}& & & & \\ & \underset{–}{}& & & & \\ \text{(b)}& \text{Salaries A/c}& \text{Dr}& & 2,000& \\ & \text{To Employee}& & & & 1,200\\ & \text{To Suspense A/c}& & & & 800\\ & \text{(Salary paid Rs. 2000, wrongly entered in}& & & & \\ & \text{employee’s personal account as Rs. 1200, now}& & & & \\ & \text{rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(c)}& \text{Sales A/c}& \text{Dr}& & 1,600& \\ & \text{To Purchase A/c}& & & & 1,000\\ & \text{To Suspense A/c}& & & & 600\\ & \text{(Goods withdrawn by proprietor Rs. 1,000,}& & & & \\ & \text{wrongly credited to sales account as Rs. 1,600 now}& & & & \\ & \text{rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(d)}& \text{Suspense A/c}& \text{Dr}& & 2,700& \\ & \text{To Machinery A/c}& & & & 2,700\\ & \text{(Depreciation charged on machinery Rs. 3,000}& & & & \\ & \text{wrongly credited to machinery account Rs. 300 only,}& & & & \\ & \text{rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(e)}& \text{Sales A/c}& \text{Dr}& & 6,000& \\ & \text{Suspense A/c}& \text{Dr}& & 4,000& \\ & \text{To Car A/c}& & & & 10,000\\ & \text{(Sales of old car for Rs. 10,000, wrongly posted}& & & & \\ & \text{in sales account, as Rs. 6,000, now rectified)}& & & & \end{array}$
$\begin{array}{cccccccc}\text{Dr}& & & & \text{Suspense Account}& & & \text{Cr}\end{array}$

$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. Rs}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt. Rs}\\ \text{(a)}& \text{Rajat's A/c}& & 5,000& & \text{Balance b/d}& & 16,300\\ & \text{Kamal's A/c}& & 6,000& \text{(b)}& \text{Salaries A/c}& & 800\\ \text{(d)}& \text{Machinery A/c}& & 2,700& \text{(c)}& \text{Sales A/c}& & 600\\ \text{(e)}& \text{Car}& & \underset{–}{4,000}& & & & \underset{–}{}\\ & & & \underset{–}{17,700}& & & & \underset{–}{17,700}\end{array}$