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Question
Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.
(a) Depreciation provided on machinery ₹ 4,000 was not posted to Depreciation account.
(b) Bad debts written-off ₹ 5,000 were not posted to Debtors account.
(c) Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted to discount allowed account.
(d) Goods withdrawn by proprietor for personal use ₹ 800 were not posted to Drawings account.
(e) Bill receivable for ₹ 2,000 received from a debtor was not posted to Bills receivable account.
Journal Entry
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Solution
| Journal | ||||
| S.No. | Particulars | L.F. | Debit Amount ₹ | Credit Amount ₹ |
| (a) | Depreciation A/c Dr. | 4,000 | ||
| To Suspense A/c | 4,000 | |||
| (Depreciation on machinery was not posted to Depreciation Account, now rectified) | ||||
| (b) | Suspense A/c Dr. | 5,000 | ||
| To Debtors A/c To Debtors A/c | 5,000 | |||
| (Bad debts written off were not posted to Debtors Account, now rectified) | ||||
| (c) | Discount Allowed A/c Dr. | 100 | ||
| To Suspense A/c | 100 | |||
| (Discount allowed to customers was not posted to Discount Allowed Account, now rectified) | ||||
| (d) | Drawings A/c Dr. | 800 | ||
| To Suspense A/c | 800 | |||
| (Goods withdrawn by proprietors were not posted to Drawings Account, now rectified) | ||||
| (e) | Bills Receivable A/c Dr. | 2,000 | ||
| To Suspense A/c | 2,000 | |||
| (Bill Receivable received from debtors were not posted to Bills Receivable Account, now rectified) | ||||
| Dr. | Suspense Account | Cr. | |||||
| S.No. | Particulars | J.F. | Amount ₹ |
S.No. | Particulars | J.F. | Amount ₹ |
| (b) | Debtors | 5,000 | (a) | Depreciation Discount | 4,000 | ||
| (e) | Allowed | 100 | |||||
| (d) | Drawing | 800 | |||||
| To Balance c/d | 1,900 | (e) | Bills Receivable | 2,000 | |||
| 6,900 | 6,900 | ||||||
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