Question

The bookkeeper of a firm found that the trial balance was out by ₹ 922 (excess credit).
He placed the amount in the suspense account and subsequently found the following errors:

1. The total discount column on the credit side of the cash book ₹ 78 was not posted in the ledger.
2. The total of purchases book was short by ₹ 1,000.
3. A credit sale of goods to Natarajan for ₹ 375 was entered in the sales book as ₹ 735.
4. A credit sale of goods to Mekala for ₹ 700 was entered in the purchases book. You are required to give rectification entries and prepare a suspense account.

Answer 1

S.No.	Particulars	L.F.	Dr. (₹)	Cr. (₹)
(a)	Suspense A/c      Dr.     To Discount received A/c (Omitted entry recorded now)		78	78
(b)	Purchases A/c    Dr.   To Suspense A/c (Short purchase rectified)		1,000	1,000
(c)	Sales A/c Dr.   To Natarajan A/c (Excess sales rectified)		365	365
(d)	Mekala A/c Dr.   To purchases A/c   To Sales A/c (Wrong entry corrected now)		1,400	700 700

Suspense Account

Dr.							Cr.
Date	Particulars	L.F.	₹	Date	Particulars	L.F.	₹
	To Balance b/d		922		By Purchases A/c		1,000
	To Discount received A/c		78
			1,000				1,000