Question

Trial balance of Anuj did not agree. It showed an excess credit of ₹ 6,000. He put the difference to suspense account. He discovered the following errors:
(a) Cash received from Ravish ₹ 8,000 posted to his account as ₹ 6,000.
(b) Returns inwards book overcast by ₹ 1,000.
(c) Total of sales book ₹ 10,000 was not posted to Sales account.
(d) Credit purchases from Nanak ₹ 7,000 were recorded in sales Book. However, Nanak’s account was correctly credited.
(e) Machinery purchased for ₹ 10,000 was posted to purchases account as ₹ 5,000. Rectify the errors and prepare suspense account.

Answer 1

Journal
S.No.	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
(a)	Suspense A/c Dr.		2,000	2,000
	To Ravish
	(Cash received from Ravish ₹ 8,000 wrongly posted to his account as ₹ 6,000, now rectified)
(b)	Suspense A/c Dr.		1,000	1,000
	To Return Inwards A/c
	(Return Inwards Book overcast by ₹ 1,000, now rectified)
(c)	Suspense A/c Dr.		10,000	10,000
	To Sales A/c
	(Total of Sales Book was not posted to Sales Account, now rectified)
(d)	Purchases A/c Dr.		7,000
	Sales A/c		7,000
	To Suspense A/c			14,000
	(Goods purchased from Nanak wrongly posted to Sales Book; however, Nanak's Account was correctly credited, now rectified)
(e)	Machinery A/c Dr.		10,000
	To Purchases A/c			5,000
	To Suspense A/c			5,000
	(Machinery purchased ₹ 10,000 wrongly posted to Purchases Account ₹ 5,000, now rectified)

 

Dr.	Suspense Account						Cr.
S.No.	Particulars	J.F.	Amount ₹	S.No.	Particulars	J.F.	Amount ₹
	Balance b/d		6,000	(d)	Purchases		7,000
(a)	Ravish		2,000		Sales		7,000
(b)	Return Inwards		1,000	(e)	Machinery		5,000
(c)	Sales		10,000
			19,000				19,000