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Question -

Rectify the following errors assuming that a suspense account was opened.
Ascertain the difference in trial balance.
(a) Credit sales to Mohan Rs 7,000 were posted to Karan as Rs 5,000.
(b) Credit purchases from Rohan Rs 9,000 were posted to the debit of Gobind as Rs 10,000.
(c) Goods returned to Rakesh Rs 4,000 were posted to the credit of Naresh as Rs 3,000.
(d) Goods returned from Mahesh Rs 1,000 were posted to the debit of Manish as Rs 2,000.
(e) Cash sales Rs 2,000 were posted to commission account as Rs 200.



Answer -

Journal Recordings to rectify the errors

 

Date

Particulars

L.F

Debit
Amount

Credit
Amount

i.

Mohan’s A/c Dr.

7,000

To Karan’s A/c

5,000

To Suspense A/c

(Credit Sales to Mohan, Error rectification recording, Credit sales to Mohan for ₹ 7,000 were posted to Karan as ₹ 5,000)

2,000

ii.

Suspense A/c Dr.

19,000

To Rohan’s A/c

9,000

To Gobind’s A/c

(Credit purchases from Rohan, Error rectification recording, Credit purchases from Rohan ₹ 9,000 were posted to the debit of Gobind as ₹ 10,000)

10,000

iii.

Rakesh’s A/c Dr.

4,000

Naresh’s A/c Dr.

3,000

To Suspense A/c

(Goods returned to Rakesh, Error rectification recording, Goods returned to Rakesh ₹ 4,000 were posted to the credit of Naresh as ₹ 3,000)

7,000

iv.

Suspense A/c Dr.

3,000

To Mahesh’s A/c

1,000

To Manish’s A/c

(Goods returned from Mahesh, Error rectification recording, Goods returned from Mahesh ₹ 1,000 were posted to the debit of Manish as ₹ 2,000)

2,000

v.

Commission A/c Dr.

200

Suspense A/c Dr.

1,800

To Sales A/c

(Cash sales, Error rectification recording, Cash sales ₹ 2,000 were posted to commission account as ₹ 200)

2,000

 

Suspense A/c

Dr.

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

To Rahan’s A/c

9,000

By Mohan’s A/c

2,000

To Gobind’s A/c

10,000

By Rakesh’s A/c

4,000

To Mahesh’s A/c

1,000

By Naresh’s A/c

3,000

To Manish’s A/c

2,000

By Balance c/d

14,800

To Sales A/c

1,800

Total

23,800

Total

23,800

Hence, the trialbalance has a ₹14,800 excess credit.

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