Question

A bookkeeper finds that the debit side of the Trial Balance is short of ₹ 308/- and so for the time being, the balances of the side by putting the difference to Suspense Account. The following errors were disclosed.
1. The debit side of the purchases account was undercast by ₹ 100/-
2. ₹ 100/- is the monthly total of discount allowed to customers were credited to the discount account in the ledger.
3. An entry for goods sold of ₹ 102/- to Mihir was posted to his account as ₹ 120/-
4. ₹ 26/- appearing in the Cash Book as paid for the purchase of Stationery for office use have not been posted to Ledger.
5. ₹ 275/- paid by Mihir were credited to Mithali’s Account.
You are required to make the necessary Journal Entries and the Suspense Account.

Answer 1

Journal Proper
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
(1)	Purchase A/c   ...Dr.		100
	To Suspense A/c			100
	(Being debit side of purchase account was undercast, now rectified)
(2)	Discount A/c    ...Dr.		200
	To Suspense A/c			200
	(Being total of discount allowed credited to discount account, now rectified)
(3)	Suspense A/c    ...Dr.		18
	To Mihir A/c			18
	(Being goods sold to Mihir for ₹ 102 posted as ₹ 120, now rectified)
(4)	Stationery A/c   ...Dr.		26
	To Suspense A/c			26
	(Being cash paid for purchase of stationery not posted now rectified)
(5)	Mithali A/c   ...Dr.		275
	To Mihir A/c			275
	(Being cash paid by Mihir credited to Mithali now rectified)
	Total ₹		619	619

 

Dr.	Suspense Account						Cr.
Date	Particulars	J.F.	Amt. (₹)	Date	Particulars	J.F.	Amt. (₹)
(-)	To Balance b/d		308	(1)	By Purchase A/c		100
(3)	To Mihir A/c		18	(2)	By Discount A/c		200
				(4)	By Stationery c/d		26
			326				326