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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 Rs 4,000 was not posted to Depreciation account.
(b) Bad debts written-off Rs 5,000 were not posted to Debtors account.
(c) Discount allowed to a debtor Rs 100 on receiving cash from him was not posted to discount allowed account.
(d) Goods withdrawn by proprietor for personal use Rs 800 were not posted to Drawings account.
(e) Bill receivable for Rs 2,000 received from a debtor was not posted to Bills receivable account.



Answer -

Journal Recordings to rectify the errors

┬а

Date

Particulars

L.F

Debit
Amount
тВ╣

Credit
Amount
тВ╣

i.

Depreciation A/c Dr.

4,000

To Suspense A/c

(Depreciation provided on machinery, Error rectification recording, was not posted to discount account)

4,000

ii.

Suspense A/c Dr.

5,000

To Debtors A/c

(Bad debts written-off, Error rectification recording, were not posted to debtors account)

5,000

iii.

Discount Allowed A/c Dr.

100

To Suspense A/c

(Discount allowed to a debtor after receiving cash, Error rectification recording, was not posted to discount allowed account)

100

iv.

Drawings A/c Dr.

800

To Suspense A/c

(Goods withdrawn by proprietor for personal use, Error rectification recording, was not posted to drawings account)

800

v.

Bills Receivable A/c Dr.

2,000

To Suspense A/c

(Bills receivable from a debtor, Error rectification recording, was not posted to Bills receivable account)

2,000

┬а

Suspense Account

Dr.

Cr.

Date

Particulars

J.F.

Amount
тВ╣

Date

Particulars

J.F.

Amount
тВ╣

To Debtors A/c

5,000

By Depreciation A/c

4,000

To Balance b/d

1,900

By Discount Allowed A/c

100

By Drawings A/c

800

By Bills Receivable A/c

2,000

Total

6,900

Total

6,900

Hence, difference intrial balance is тВ╣1,900 excess credit.

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