Question

Write out the journal entries to rectify the following errors, using a suspense account.

(i) Goods of the value of Rs. 1,000 returned by P were entered in the sales daybook and posted therefrom to the credit of his account.

(ii) An amount of Rs. 1,500 entered in the sales returns book, has been posted to the debit of Q who returned the goods.

(iii) A sale of Rs. 2,000 made to R was correctly entered in the sales day book but wrongly posted to the debit of S as Rs. 200.

(iv) Bad debts aggregating Rs. 4,500 were written-off during the year in the sales ledger but were not adjusted in the general ledger.

(v) The total of 'discount allowed' column in the cash book for the month of September, 2016 amounting to Rs. 2,500 was not posted.

Answer 1

Rectification Entries In Journal

$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{LF}& \text{Amt(Dr)}& \text{Amt(Cr)}\\ \text{(i)}& \text{Sales A/c}\text{Dr}& & \text{1,000}& \\ & \text{Sales Returns A/c}\text{Dr}& & \text{1,000}& \\ & \text{To Suspense A/c}& & & \text{2,000}\\ & \text{(The value of goods returned by P}& & & \\ & \text{wrongly posted to sales and omission of}& & & \\ & \underset{–}{\text{debit to sales returns account, now rectified )}}& & & \\ \text{(ii)}& \text{Suspense A/c}\text{Dr}& & \text{3,000}& \\ & \text{To Q's A/c}& & & \text{3,000}\\ & \text{(Wrong debit to Q for goods returned by,}& & & \\ & \underset{–}{\text{him now rectified)}}& & & \\ \text{(iii)}& \text{R's A/c}\text{Dr}& & \text{2,000}& \\ & \text{To S's A/c}& & & \text{200}\\ & \text{To Suspense A/c}& & & \text{1,800}\\ & \text{(Omission of debit to R and wrong}& & & \\ & \text{credit to S Rs. 200, for sale of Rs. 2,000}& & & \\ & \underset{–}{\text{now rectified )}}& & & \\ \text{(iv)}& \text{Bad Debts A/c}\text{Dr}& & \text{4,500}& \\ & \text{To Suspense A/c}& & & \text{4,500}\\ & \text{(The amount of bad debts written-off}& & & \\ & \underset{–}{\text{not adjusted in general ledger, now rectified)}}& & & \\ \text{(v)}& \text{Discount Allowed A/c}\text{Dr}& & \text{2,500}& \\ & \text{To Suspense A/c}& & & \text{2,500}\\ & \text{(The total of discount allowed during}& & & \\ & \text{Septermber, 2013 not posted from the cash}& & & \\ & \text{book, now rectified)}& & & \end{array}$