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Question -

Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account:
(a) Credit sales to Mohan Rs 7,000 were posted as Rs 9,000.
(b) Credit purchases from Rohan Rs 9,000 were posted as Rs 6,000.
(c) Goods returned to Rakesh Rs 4,000 were posted as Rs 5,000.
(d) Goods returned from Mahesh Rs 1,000 were posted as Rs 3,000.
(e) Cash sales Rs 2,000 were posted as Rs 200.



Answer -

Journal Recordings to rectify the errors

 

Date

Particulars

L.F

Debit
Amount

Credit
Amount

i.

Suspense A/c Dr.

2,000

To Mohan’s A/c

(Credit Sales to Mohan, Error rectification recording, credit sales were posted as ₹ 9,000 instead of ₹ 7,000)

2,000

ii.

Suspense A/c Dr.

3,000

To Rohan’s A/c

(Credit Purchases from Mohan, Error rectification recording, Credit purchases were posted as ₹ 6,000 instead of ₹ 9,000)

3,000

iii.

Suspense A/c Dr.

1,000

To Rakesh’s A/c

(Goods returned to Rakesh, Error rectification recording, Goods returned were recorded as ₹ 5,000 instead of ₹ 4,000)

1,000

iv.

Mahesh’s A/c Dr.

2,000

To Suspense A/c

(Goods returned from Mahesh, Error rectification recording, Goods returned were posted as ₹ 3,000 instead of ₹ 1,000)

2,000

v.

Suspense A/c Dr.

1,800

To Sales A/c

(Cash Sales, Error rectification recording, Cash sales were posted as ₹ 200 instead of ₹ 2,000)

200

 

Suspense Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

To Mohan’s A/c

2,000

By Mahesh’s A/c

2,000

To Rohan’s A/c

3,000

By Balance c/d

5,800

To Rakesh’s A/c

1,000

To Sales A/c

1,800

Total

7,800

Total

7,800

Hence, the differencein trial balance is ₹5,800 excess debit.

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