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Question -

Trial balance of Kohli did not agree and showed an excess debit of Rs 16,300. He put the difference to a suspense account and discovered the following errors:
(a) Cash received from Rajat Rs 5,000 was posted to the debit of Kamal as Rs 6,000.
(b) Salaries paid to an employee Rs 2,000 were debited to his personal account as Rs 1,200.
(c) Goods withdrawn by proprietor for personal use Rs 1,000 were credited to sales account as Rs 1,600.
(d) Depreciation provided on machinery Rs 3,000 was posted to Machinery account as Rs 300.
(e) Sale of old car for Rs 10,000 was credited to sales account as Rs 6,000. Rectify the errors and prepare suspense account.



Answer -

Journal Recordings to rectify the errors

 

Date

Particulars

L.F

Debit
Amount
₹

Credit
Amount
₹

i.

Suspense A/c Dr.

11,000

To Rajat’s A/c

5,000

To Kamal’s A/c

(Cash received from Rajat, Error rectification recording, was debited to Kamal’s account instead of crediting to Rajat’s account.)

6,000

ii.

Salaries A/c Dr.

2,000

To Employee A/c

1,200

To Suspense A/c

(Salaries paid to employees, Error rectification recording, was wrongly debited to employee’s account with ₹ 1,200 instead of debiting ₹ 2,000 to salaries account)

800

iii.

Sales A/c Dr.

1,600

Drawings A/c

1,000

To Suspense A/c

(Goods withdrawn by the proprietor, Error rectification recording, was wrongly credited to Sales account with ₹ 1,600 instead of crediting the drawings account with ₹ 1,000)

600

iv.

Suspense A/c Dr.

2,700

To Machinery A/c

(Depreciation provided on machinery, Error rectification recording, was posted as ₹ 300 instead of ₹ 3,000)

2,700

v.

Sales A/c Dr.

6,000

Suspense A/c Dr.

4,000

To Car A/c

(Goods withdrawn by the proprietor, Error rectification recording, was wrongly credited to Sales account with ₹ 1,600 instead of debiting the drawings account with ₹ 1,000)

10,000

 

Suspense Account

Dr.

Cr.

Date

Particulars

J.F.

Amount
₹

Date

Particulars

J.F.

Amount
₹

To Rajat’s A/c

5,000

By Balance b/d

16,300

To Kamal’s A/c

6,000

By Salaries A/c

800

To Machinery A/c

2,700

By Sales A/c

600

To Car A/c

4,000

Total

17,700

Total

17,700

Therefore, total ofthe suspense account is ₹17,700.

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