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Question -

Trial balance of Khatau did not agree. He put the difference to suspense account and discovered the following errors:
(a) Credit sales to Manas Rs 16,000 were recorded in the purchases book as Rs 10,000 and posted to the debit of Manas as Rs 1,000.
(b) Furniture purchased from Noor Rs 6,000 was recorded through purchases book as Rs 5,000 and posted to the debit of Noor Rs 2,000.
(c) Goods returned to Rai Rs 3,000 recorded through the Sales book as Rs 1,000.
(d) Old machinery sold for Rs 2,000 to Maneesh recorded through sales book as Rs 1,800 and posted to the credit of Manish as Rs 1,200.
(e) Total of Returns inwards book Rs 2,800 posted to Purchase account.
 
Rectify the above errors and prepare suspense account to ascertain the difference in trial balance.



Answer -

Journal Recordings to rectify the errors

 

Date

Particulars

L.F

Debit
Amount
₹

Credit
Amount
₹

i.

Manas’s A/c Dr.

15,000

Suspense A/c Dr.

11,000

To Purchases A/c

10,000

To Sales A/c

(Credit sales for ₹ 16,000, Error rectification recording, was wrongly recorded as ₹ 10,000 in the purchases book and posted to the debit of Manas as ₹ 1,000)

16,000

ii.

Furniture A/c Dr.

6,000

Suspense A/c Dr.

7,000

To Noor’s A/c

8,000

To Purchases A/c

(Furniture purchased from Noor for ₹ 6,000, Error rectification recording, was recorded through purchases book as ₹ 5,000 and posted to the debit of Noor as ₹ 2,000)

5,000

iii.

Sales A/c Dr.

1,000

Rai’s A/c Dr.

2,000

To Returns Outward A/c

(Goods returned, Error Rectification Entry, was wrongly recorded through the sales book as ₹ 1,000 instead of ₹ 3,000)

3,000

iv.

Manish’s A/c Dr.

1,200

Sales A/c Dr.

1,800

Maneesh’s A/c Dr.

2,000

To Machinery A/c

2,000

To Suspense A/c

(Old machinery sold to Maneesh for ₹ 2,000, Error Rectification Entry, was wrongly recorded through sales book as ₹ 1,800 and posted to Manish’s account as ₹ 1,200)

3,000

v.

Return Inward A/c Dr.

2,800

To Purchases A/c

(Total of returns inwards book, Error Rectification Entry, was wrongly posted to purchases account)

2,800

 

Suspense Account

Dr.

Cr.

Date

Particulars

J.F.

Amount
₹

Date

Particulars

J.F.

Amount
₹

To Sales A/c

11,000

By Manish’s A/c

3,000

To Noor’s A/c

7,000

By Balance c/d

15,000

Total

18,000

Total

18,000

Hence, the trialbalance is Rs 15,000 excess debit

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