Question

There was an error in the Trial Balance of Mr. Yashwant on 31st March 2019, and the difference in Books was carried to a Suspense Account. Ongoing through the Books you found that.

1. ₹ 1,000/- being purchases return were posted to the debit of Purchase Account.
2. ₹ 4,000/- paid to Badrinath was debited to Kedarnath’s Account.
3. ₹ 5,400/- received from Kishor was posted to the debit of his account.
4. Discount received ₹ 2,000/- was posted to the debit of Discount Allowed Account.
5. ₹ 2,740/- paid to Repairs to Motor Cycle was debited to Motor Cycle Account ₹ 1,740/-
Give Journal Entries to rectify the above errors and ascertain the amount transferred to Suspense Account on 31st March 2019 by showing the Suspense Account, assuming that the Suspense Account is balanced after the above corrections.

Answer 1

Journal Proper
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
(1)	Suspense A/c    ...Dr.		2,000
	To Purchases A/c			1,000
	To Purchase Return A/c			1,000
	(Being Purchase Return posted to debit of purchase account, now rectified)
(2)	Badrinath A/c   ...Dr.		4,000
	To Kedarnath's A/c			4,000
	(Being amount paid to Badrinath debited to Kedarnath, now rectified)
(3)	Suspense A/c    ...Dr.		10,800
	To Kishor A/c			10,800
	(Being amount received from Kishor posted on debited side of his account, now rectified)
(4)	Suspense A/c   ...Dr.		4,000
	To Discount Allowed A/c			2,000
	To Discount Received A/c			. 2,000
	(Being discount received debited to discount allowed account, now rectified)
(5)	Repairs to Motor cycle A/c    ..Dr.		2,740
	To Motor cycle A/c			1,740
	To Suspense A/c			1,000
	(Being repairs to Motor cycle ₹ 2,740 debited wrongly to motor cycle A/c as ₹ 1,740, now rectified)
	Total (₹)		23,540	23,540

 

Dr.	Suspense Account						Cr.
Date	Particulars	J.F.	Amt. (₹)	Date	Particulars	J.F.	Amt. (₹)
(1)	To Purchases A/c		1,000	(-)	By Balance b/d		15,800
(1)	To Purchase Return A/c		1,000		(Balancing figure)
(3)	To Kishor A/c		10,800	(5)	By Repairs to motor cycle A/c		1,000
(4)	To Discount Allowed A/c		2,000
(4)	To Discount Received A/c		2,000
			16,800				16,800