Question

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.
(a) Depreciation provided on machinery ₹ 4,000 was not posted to Depreciation account.
(b) Bad debts written-off ₹ 5,000 were not posted to Debtors account.
(c) Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted to discount allowed account.
(d) Goods withdrawn by proprietor for personal use ₹ 800 were not posted to Drawings account.
(e) Bill receivable for ₹ 2,000 received from a debtor was not posted to Bills receivable account.

Answer 1

Journal
S.No.	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
(a)	Depreciation A/c Dr.		4,000
	To Suspense A/c			4,000
	(Depreciation on machinery was not posted to Depreciation Account, now rectified)
(b)	Suspense A/c Dr.		5,000
	To Debtors A/c To Debtors A/c			5,000
	(Bad debts written off were not posted to Debtors Account, now rectified)
(c)	Discount Allowed A/c Dr.		100
	To Suspense A/c			100
	(Discount allowed to customers was not posted to Discount Allowed Account, now rectified)
(d)	Drawings A/c Dr.		800
	To Suspense A/c			800
	(Goods withdrawn by proprietors were not posted to Drawings Account, now rectified)
(e)	Bills Receivable A/c Dr.		2,000
	To Suspense A/c			2,000
	(Bill Receivable received from debtors were not posted to Bills Receivable Account, now rectified)

 

Dr.	Suspense Account						Cr.
S.No.	Particulars	J.F.	Amount ₹	S.No.	Particulars	J.F.	Amount ₹
(b)	Debtors		5,000	(a)	Depreciation Discount		4,000
				(e)	Allowed		100
				(d)	Drawing		800
	To Balance c/d		1,900	(e)	Bills Receivable		2,000
			6,900				6,900