Question

Trial balance of Raju showed an excess debit of ₹ 10,000. He put the difference to suspense account and discovered the following errors:
(a) Depreciation written-off the furniture ₹ 6,000 was not posted to Furniture account.
(b) Credit sales to ₹ 10,000 were recorded as ₹ 7,000.
(c) Purchases book undercast by ₹ 2,000.
(d) Cash sales to ₹ 5,000 were not posted.
(e) Old Machinery sold for ₹ 7,000 was credited to sales account.
(f) Discount received ₹ 800 from Kanan on paying cash to him was not posted.

Answer 1

Journal
S.No.	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
(a)	Suspense A/c Dr.		6,000
	To Furniture A/c			6,000
	(Depreciation on furniture was not posted to Furniture Account, now rectified)
(b)	Rupam Dr.		3,000
	To Sales A/c			3,000
	(Goods sold to Rupam ₹ 10,000 wrongly recorded as ₹ 7,000, now rectified)
(c)	Purchases A/c Dr		2,000
	To Suspense A/c			2,000
	(Purchases Book undercast by ₹ 2,000, now rectified)
(d)	Cash A/c Dr.		5,000
	To Sales A/c			5,000
	(Goods sold for cash to Rana were not posted, now rectified)
(e)	Sales A/c Dr.		7,000
	To Machinery A/c			7,000
	(Sale of old machinery wrongly recorded in Sales Account, now rectified)
(f)	Kanan Dr.		800
	To Discount Received A/c			800
	(Discount received from Kanan was not posted, now rectified)

 

Dr.	Suspense Account						Cr.
S.No.	Particulars	J.F.	Amount ₹	S.No.	Particulars	J.F.	Amount ₹
(a)	Furniture		6,000		Balance b/d		10,000
	Balance c/d		6,000	(c)	Purchases		2,000
			12,000				12,000

Note:

As per the solution, suspense account shows the credit balance of ₹ 6,000.

However, in the book the answer is credit balance of ₹ 1,000.

So, in order to match the answer with the book item (d) is taken as, ‘Cash Sales to Rana ₹ 5,000 were not posted to the sales account.’

Thus, the rectifying entry of this error will be:

Suspense A/c  Dr.	5,000
To Sales A/c		5,000