3. The Book-Keeper of Amritsar Fast Food Centre having failed to agree the Trial Balance
transferred the excess of credit over the debit to Suspense Account. The difference was 120.
The following errors were subsequently discovered :
(a) A cheque of * 650 received from Amrit having been dishonoured was wrongly debited
to Allowances Account.
(6) The discount colum of Cash Book representing discount allowed to customers for the
month of December was over added by 120.
(c) Sales Returns of 200 from Babu Ram was omitted to be posted to his account.
(d) The credit side of Kunal's account had been overcast by * 40.
(e) Cash sales 800 has been recorded in the sales book.
The total of Purchase Book was undercast by 400.
(g) Purchase Returns 1,000 to Meera was omitted from books.
Rectify the above errors and prepare Suspense Account.
Answers
Answer:
The Book-Keeper of Amritsar Fast Food Centre having failed to agree the Trial Balance
transferred the excess of credit over the debit to Suspense Account. The difference was 120.
The following errors were subsequently discovered :
(a) A cheque of * 650 received from Amrit having been dishonoured was wrongly debited
to Allowances Account.
(6) The discount colum of Cash Book representing discount allowed to customers for the
month of December was over added by 120.
(c) Sales Returns of 200 from Babu Ram was omitted to be posted to his account.
(d) The credit side of Kunal's account had been overcast by * 40.
(e) Cash sales 800 has been recorded in the sales book.
The total of Purchase Book was undercast by 400.
(g) Purchase Returns 1,000 to Meera was omitted from books.
Rectify the above errors and prepare Suspense Account.
Answer:
The Book-Keeper of Amritsar Fast Food Centre having failed to agree the Trial Balance
transferred the excess of credit over the debit to Suspense Account. The difference was 120.
The following errors were subsequently discovered :
(a) A cheque of * 650 received from Amrit having been dishonoured was wrongly debited
to Allowances Account.
(6) The discount colum of Cash Book representing discount allowed to customers for the
month of December was over added by 120.
(c) Sales Returns of 200 from Babu Ram was omitted to be posted to his account.
(d) The credit side of Kunal's account had been overcast by * 40.
(e) Cash sales 800 has been recorded in the sales book.
The total of Purchase Book was undercast by 400.
(g) Purchase Returns 1,000 to Meera was omitted from books.
Rectify the above errors and prepare Suspense Account.