Question

Trial balance of Sagar did not agree. It showed an excess credit Rs 7,550. Sagar put the difference to suspense account. He located the following errors-

1) Sales return book was overcast by Rs 1,200.
2) Purchases book was undercast by Rs 750.
3) Goods returned to Mahesh Rs 1000 were recorded through sales book.
4) Credit purchase from Mahadev Rs 6,000 were recorded through sales book.
5) Credit purchase from Damodhar Rs 4,000 were recorded through sales book. However, Damodhar’s account was correctly credited.
6) Salary paid Rs 3,500 was debited to employee’s personal account.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1	Suspense A/c	Dr.		1,200
	To Sales Return A/c				1,200
	(Sales returns book overcasted, now rectified)
2	Purchases A/c	Dr.		750
	To Suspense A/c				750
	(Purchase book undercasted, now rectified)
3	Sales A/c	Dr.		1,000
	To Purchase Return A/c				1,000
	(Purchase returns recorded as sales, now rectified)
4	Purchases A/c	Dr.		6,000
	Sales A/c	Dr.		6,000
	To Mahadev				12,000
	(Purchases from Mahadev recorded as Sales, now rectified)
5	Purchases A/c	Dr.		4,000
	Sales A/c	Dr.		4,000
	To Suspense A/c				8,000
	(Purchases recorded as Sales, now rectified)
6	Salary A/c	Dr.		3,500
	To Employee’s Personal A/c				3,500
	(Salary paid debited to Employee’s personal account, now rectified)