Question

Give journal entries to rectify the following errors assuming that suspense account had been opened.
(a) Goods distributed as free sample ₹ 5,000 were not recorded in the books.
(b) Goods withdrawn for personal use by the proprietor ₹ 2,000 were not recorded in the books.
(c) Bill receivable received from a debtor ₹ 6,000 was not posted to his account
(d) Total of returns inwards book ₹ 1,200 was posted to Returns outwards account.
(e) Discount allowed to ₹ 700 on receiving cash from her was recorded in the books as ₹ 70.

Answer 1

Journal
S.No.	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
(a)	Advertisement A/c Dr.		5,000
	To Purchases A/c			5,000
	(Goods distributed as free sample ₹ 5,000 were not recorded, now rectified)
(b)	Drawings A/c Dr.		2,000
	To Purchases A/c			2,000
	(Goods withdrawn by proprietor for personal use were not recorded, now rectified)
(c)	Suspense A/c Dr.		6,000
	To Debtors A/c			6,000
	(B/R received from debtors was not posted to his account, now rectified)
(d)	Return Inward A/c Dr.		1,200
	Return Outward A/c Dr.		1,200
	To Suspense A/c			2,400
	(Total Return Inwards Book ₹ 1,200 wrongly posted to Returns Outwards Account, now rectified)
(e)	Discount Allowed A/c Dr.		630
	To Reema Dr.			630
	(Discount allowed to Reema ₹ 700 wrongly recorded as ₹ 70, now rectified)

 

Dr.	Suspense Account						Cr.
S.No.	Particulars	J.F.	Amount ₹	S.No.	Particulars	J.F.	Amount ₹
(c)	Debtors		6,000	(d)	Return Inward		1,200
					Return Outward		1,200
					Balance c/d		3,600
			6,000				6,000