Question

The trial Balance of Anurag did not agree. It showed an excess credit of ₹ 6,000/-. He put the difference to Suspense Account. He discovered the following errors.
1. Cash received from Ramakant ₹ 8,000/- posted to his account as ₹ 6,000/-
2. Credit purchases from Naman ₹ 7,000/- were recorded in Sales Book. However, Naman’s Account was correctly credited.
3. Return Inwards Book overcast by ₹ 1,000/-
4. Total of Sales Book ₹ 10,000/- was not posted to Sales Account.
5. Machinery purchased for ₹ 10,000/- was posted to Purchases Account as ₹ 5,000/-.
Rectify the errors and prepare Suspense Account.

Answer 1

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
(1)	Suspense A/c   ...Dr.		2,000
	To Ramakant A/c			2,000
	(Being Cash received ₹ 8,000 posted as , 6,000, now rectified)
(2)	Sales A/c   ...Dr.		7,000
	Purchases A/c   ...Dr.		7,000
	To Suspense A/c			14,000
	(Being Credit purchase reconciled in sales book, however party's account correctly posted, now rectified)
(3)	Suspense A/c    ...Dr.		1,000
	To Return Inwards A/c			1,000
	(Being Return Innards book overcast now rectified)
(4)	Suspense A/c    ...Dr.		10,000
	To Sales A/c			10,000
	(Being total of sales book not posted now rectified)
(5)	Machinery A/c   ...Dr.		10,000
	To Purchases A/c			5,000
	To Suspense A/c			5,000
	(Being Machinery Purchase or Post to PurchaseA/c by 5000 Now Rectified)
	Total (₹)		37,000	37,000

 

Dr.	Suspense Account						Cr.
Date	Particulars	J.F.	Amt. (₹)	Date	Particulars	J.F.	Amt. (₹)
(-)	To Balance b/d		6,000	(2)	By Sales A/c		7,000
(1)	To Ramakant A/c		2,000	(2)	By Purchases A/c		7,000
(3)	To Return Inward A/e		1,000	(5)	By Machinery A/c		5,000
(4)	To Sales A/c		10,000
			19,000				19,000