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Question -

Trial balance of Raju showed an excess debit of Rs 10,000. He put the difference to suspense account and discovered the following errors:
(a) Depreciation written-off the furniture Rs 6,000 was not posted to Furniture account.
(b) Credit sales to Rupam Rs 10,000 were recorded as Rs 7,000.
(c) Purchases book undercast by Rs 2,000.
(d) Cash sales to Rana Rs 5,000 were not posted.
(e) Old Machinery sold for Rs 7,000 was credited to sales account.
(f) Discount received Rs 800 from Kanan on playing cash to him was not posted. 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.

6,000

To Furniture A/c

(Depreciation written-off the furniture, Error rectification recording, was not posted furniture account)

6,000

ii.

Rupam’s A/c Dr.

3,000

To Sales A/c

(Credit Sales to Rupam, Error rectification recording, was wrongly recorded as ₹ 7,000 instead of ₹ 10,000)

3,000

iii.

Purchases A/c Dr.

2,000

To Suspense A/c

(Purchases book undercasting rectification, Error rectification recording)

2,000

iv.

Cash A/c Dr.

5,000

To Sales A/c

(Cash sales, Error rectification recording, were not posted earlier)

5,000

v.

Sales A/c Dr.

7,000

To Machinery A/c

(Old machinery sold out, Error rectification recording, was wrongly credited to sales account instead of machinery account earlier)

5,000

vi.

Kanan’s A/c Dr.

800

To Discount Received A/c

(Discount received from Kanan, Error rectification recording, was not posted earlier)

800

 

Suspense Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

To Furniture A/c

6,000

By Balance b/d

10,000

To Balance b/d

6,000

By Purchases A/c

2,000

Total

12,000

Total

12,000

Hence, the creditbalance is ₹ 6000

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