Question

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.
(a) Furniture purchased for ₹ 10,000 wrongly debited to purchase account as ₹ 4,000.
(b) Machinery purchased on credit from Raman for ₹ 20,000 recorded through Purchases Book as ₹ 6,000.
(c) Repairs on machinery ₹ 1,400 debited to Machinery account as ₹ 2,400.
(d) Repairs on overhauling of second hand machinery purchased ₹ 2,000 ₹ 200.
(e) Sale of old machinery at book value ₹ 3,000 was credited to sales account as ₹ 5,000.

Answer 1

Journal
S.No.	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
(a)	Furniture A/c Dr.		10,000
	To Purchases A/c			4,000
	To Suspense A/c			6,000
	(Furniture purchased ₹ 10,000 wrongly entered in Purchases Account as ₹ 4,000, now rectified)
(b)	Machinery A/c Dr.		20,000
	To Purchases A/c			6,000
	To Raman			14,000
	(Machinery purchased ₹ 20,000 from Raman wrongly entered in Purchases Book as ₹ 6,000, now rectified)
(c)	Repairs A/c Dr.		1,400
	Suspense A/c Dr.		1,000
	To Machinery A/c			2,400
	(Repair of machinery ₹ 1,400 wrongly debited to Machinery Account as ₹ 2,400)
(d)	Machinery A/c Dr.		2,000
	To Repairs A/c			200
	To Suspense A/c			1,800
	(Overhauling of second-hand machine ₹ 2,000 wrongly debited to Repairs Account as ₹ 200, now rectified)
(e)	Sales A/c Dr.		5,000
	To Machinery A/c			3,000
	To Suspense A/c			2,000
	(Old machinery sold for ₹ 3,000 wrongly credited to Sales Account as ₹ 5,000, now rectified)

 

Dr.	Suspense Account						Cr.
S.No.	Particulars	J.F.	Amount ₹	S.No.	Particulars	J.F.	Amount ₹
(c)	Machinery		1,000	(a)	Furniture		6,000
				(d)	Machinery		1,800
	To Balance c/d		8,800	(e)	Sales		2,000
			9,800				9,800