While checking the accounts of ABC the following discrepancies were noticed, even though the trial balance was made to balance by putting the difference to suspense A/c.
(a) Sales day book for the month of June 2013 was found overcast by Rs. 7000
(b) A credit purchase of Rs.3,000 was omitted to be recorded in the day book.
(c) Rs.4,300 received from A credited to A's Rs.3,400
(d) Purchase of office equipment worth Rs.5,000 included in trading purchases.
From the above details while rectifying the mistake suspense a/c will be.

Debited by Rs.9,100

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Credited by Rs.6,100

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Debited by Rs.7,900

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Credited by Rs.7,900

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Solution

The correct option is B Credited by Rs.6,100
Solution to this will be as under:
(a) Sales day book for the month of June 2013 was found overcast by Rs. 7000: Suspense A/c will be credited by Rs.7000.
(b) A credit purchase of Rs.3,000 was omitted to be recorded in the day book: Its a complete omission of an entry, hence no affect on suspense a/c.
(c) Rs.4,300 received from A credited to A's Rs.3,400: This will affect suspense account of debit of Rs.900.
(d) Purchase of office equipment worth Rs.5,000 included in trading purchases: Its an error of principle, hence no affect on suspense a/c.

In Summary:
Credit to Suspense A/c Rs.7000
Debit to Suspense A/c Rs. 900
Net credit to Suspense A/c of Rs.6100

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Similar questions

Q. While checking the accounts of ABC the following discrepancies were noticed, even though the trial balance was made to balance by putting the difference to Suspense A/c.
(i) Sales day book for the month of June was found overcast by Rs

7, 000

.
(ii) A credit purchase of Rs

3, 000

was omitted to be recorded in the purchase day book.
(iii) Rs

4, 300

received from A credited to A A/c Rs

3, 400

.
(iv) Purchase of Office Equipment worth Rs

5, 000

included in trading purchases.
From the above details what would have been the difference in Trial Balance which was made to balance by opening Suspense A/c.

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.

Trial balance of Anuj did not agree. It showed an excess credit of Rs 6,000.

He put the difference to suspense account. He discovered the following erro Rs

(a)	Cash received from Ravish Rs 8,000 posted to his account as Rs 6,000.
(b)	Returns inwards book overcast by Rs 1,000.
(c)	Total of sales book Rs 10,000 was not posted to Sales account.
(d)	Credit purchases from Nanak Rs 7,000 were recorded in sales Book. However, Nanak’s account was correctly credited.
(e)	Machinery purchased for Rs 10,000 was posted to purchases account as Rs 5,000. Rectify the errors and prepare suspense account.

Rectify the following errors by opening a suspense account credit side of the trial balance was cast short and the difference of trial account.

1) Paid Rs 700 to Nishigandha was debited to pritigantha account.
2) Total of sales book cast short by Rs 175.
3) Purchased goods casting Rs 690 on credit from shrawani was recorded in the purchase book but failed to credit shrawani account.
4) Total of purchase book was Overcast by Rs 95.
5) Received Rs 548 from Firoz on account was correctly recorded in cash account but Firoz account was credited by Rs 584.
6) Paid Advertisement Expenses amounted to Rs 350 was wrongly recorded twice in the Advertisement account.

The Trial Balance shows a difference of Rs 1339 in the debit column and is made to agree by putting this difference against a suspense account later the following errors were discovered, Rectify them and prepare a suspense account.

1) Goods sold to Deepak worth Rs 550 on credit this was recorded in sales but not posted in the ledger to Deepak account.
2) Goods worth Rs 325 were returned by Bhat. The amount was credited to his account but was not entered in the sales Return Book.
3) Nandu paid Rs 760 to us, but their account was credited for Rs 706.
4) Goods worth Rs 225 purchased from Subhash were wrongly entered in the sales Book.
5) An amount of Rs 320 owned by Kishor was omitted from the list of Sundry Debtors.
6) The Purchase Book was overcast by Rs 252.

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