Question

Trial balance of John did not agree. He put the difference to suspense account and discovered the following errors:
(a) In the sales book for the month of January total of page 2 was carried forward to page 3 as ₹ 1,000 instead of ₹ 1,200 and total of page 6 was carried forward to page 7 as ₹ 5,600 instead of ₹ 5,000.
(b) Wages paid for installation of machinery ₹ 500 was posted to wages account as ₹ 50.
(c) Machinery purchased from R and Co. for ₹ 10,000 on credit was entered in Purchase Book as ₹ 6,000 and posted there from to R and Co. as ₹ 1,000.
(d) Credit sales to Mohan ₹ 5,000 were recorded in Purchases Book.
(e) Goods returned to Ram ₹ 1,000 were recorded in Sales Book.
(f) Credit purchases from S and Co. for ₹ 6,000 were recorded in sales book. However, S and Co. was correctly credited.
(g) Credit purchases from M and Co. ₹ 6,000 were recorded in Sales Book as ₹ 2,000 and posted there from to the credit of M and Co. as ₹ 1,000.
(h) Credit sales to Raman ₹ 4,000 posted to the credit of Raghvan as ₹ 1,000.
(i) Bill receivable for ₹ 1,600 from Noor was dishonoured and posted to debit of Allowances account.
(j) Cash paid to Mani ₹ 5,000 against our acceptance was debited to Manu.
(k) Old furniture sold for ₹ 3,000 was posted to Sales account as ₹ 1,000.
(l) Depreciation provided on furniture ₹ 800 was not posted.
(m) Material ₹ 10,000 and wages ₹ 3,000 were used for construction of building. No adjustment was made in the books.

Answer 1

Journal
S.No.	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
(a)	Sales A/c Dr.		400
	To Suspense A/c			400
	(Net balance of Sales Book overcasted by ₹ 400. now rectified)
(b)	Machinery A/c Dr.		500
	To Wages A/c			50
	To Suspense A/c			450
	(Wages paid for installation of machinery wrongly posted as ₹ 50 to Wages Account, now rectified)
(c)	Machinery A/c Dr.		10,000
	Suspense A/c Dr.		5,000
	To Purchases A/c			6,000
	To R and Co. A/c			9,000
	(Purchased machinery from R and Co. ₹ 10,000 wrongly posted to Purchases Book as ₹ 6,000 and posted to R and Co. Account ₹ 1,000, now rectified)
(d)	Mohan Dr.		10,000
	To Sales A/c			5,000
	To Purchases A/c			5,000
	(Goods sold to Mohan ₹ 5,000 wrongly recorded in the Purchases Book, now rectified)
(c)	Sales A/c Dr.		1,000
	To Purchases Return A/c			1,000
	(Goods returned to Ram wrongly recorded in the Sales Book, now rectified)
(f)	Purchases A/c Dr.		6,000
	Sales A/c		6,000
	To Suspense A/c			12,000
	(Purchased goods from S and Co. wrongly recorded in the Sales Book; however, correctly credited to S and Co. Account, now rectified)
(g)	Purchases A/c Dr.		6,000
	Sales A/c Dr.		2,000
	To M and Co.			5,000
	To Suspense A/c			3,000
	(Purchased goods from M and Co. ₹ 6,000 wrongly recorded in Sales Book as ₹ 2,000 and credited to M and Co. Account as ₹ 1,000, now rectified)
(h)	Raman Dr.		4,000
	Raghvan Dr.		1,000
	To Suspense A/c			5,000
	(Sold goods to Raman ₹ 4,000 wrongly posted to the credit of Raghavan's Account as ₹ 1,000. now rectified)
(i)	Noor A/c Dr.		1,600
	To Allowance A/c			1,600
	(B/R dishonored, which was received from Noor, wrongly debited to Allowance Account instead of Noor, now rectified)
(j)	Bills Payable A/c Dr.		5,000
	To Manu			5,000
	(Amount of Bill Payable paid to Mani wrongly debited to Manu's Account, now rectified)
(k)	Sales A/c Dr.		1,000
	Suspense A/c Dr.		2,000
	To Furniture A/c			3,000
	(Old furniture sold for ₹ 3,000 wrongly posted to Sales Account as ₹ 1,000, now rectified)
(l)	Depreciation A/c Dr.		800
	To Furniture A/c			800
	(Depreciation on furniture was not posted, now rectified)
(m)	Building A/c Dr.		13,000
	To Purchases A/c			10,000
	To Wages A/c			3,000
	(Material ₹ 10,000 and wages ₹ 3,000 that were used for construction of building were not recorded, now rectified)

Note:

In item (m), it has been assumed that the materials used in the construction of building are part of stock in trade.

Dr.	Suspense Account						Cr.
S.No.	Particulars	J.F.	Amount ₹	S.No.	Particulars	J.F.	Amount ₹
(c)	Purchases		5,000	(a)	Sales		400
(k)	Furniture		2,000	(b)	Machinery		450
				(f)	Purchases		6,000
					Sales		6,000
				(g)	Purchases		3,000
				(h)	Raman		4,000
	Balance c/d		13,850		Raghvan		1,000
			20,850				20,850