n Accountant, while balancing his books found that there was a difference of₹ 8,595 in the Trial
Balance. Being required to prepare the final accounts, he placed
this difference to a newIy Opened Suspense Account which was carried forward to the next year,
when the following errors were discovered:-
(a) Goods bought from a merchant for ₹ 550 had been posted to the credit of his account as ₹ 5,500.
(b) An item of ₹ 1,062 entered in the Sales Return Book had been posted to the debit of the customer
who returned the goods. (c) Sundry items of plant sold for ₹ 26,000 had been entered in the Sales Book, the total of which book
had been posted to Sales Account.
(d) ₹ 6,000 owing by a customer had been omitted from the schedule of Sundry Debtors.
(e) ₹ 231 discount received from a creditor had been duly entered in his account but not posted to
Discount Received Account.
Give Journal entries necessary to correct these errors and prepare the Suspense Account. Also prepare
the Profit and Loss Adjustment Account
Answers
Answer:
Rectification entries in Journal
Date
Particulars
LF
Amt(Dr)
Amt(Cr)
(i)
Merchant A/c
Dr
49.50
To Suspense A/c
49.50
(Excess amount posted to the credit
of a merchant account)
–––––––––––––––––––––––––––––––––––––––––
(ii)
Suspense A/c
Dr
21.24
To Customer A/c
21.24
(Amount wrongly debited instead
of being credited in the customer account
)
––––––––––––––––––––––––––––––––––––––––––––––
(iii)
Sundry Debtors A/c
Dr
60.00
To Suspense A/c
60.00
(Customer's account not recorded in
the list of sundry debtors)
––––––––––––––––––––––––––––––––––––––––––
(iv)
Suspense A/c
Dr
2.31
To Discount Received A/c
2.31
(Discount received not posted to
the credit of discount received account
)
Suspense A/c
Date
Particulars
JF
Amt(Rs)
Date
Particulars
JF
Amt(Rs.)
Balance b/d
85.95
Merchant A/c
49.50
Customer A/c
21.24
Sundry Debtors A/c
60.00
Discount Received A/c
2.31
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
109.50
–––––––
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
109.50
–––––––
Note: After passing all the rectifying entries, it is ascertained that the credit side of the suspense account exceeds the debit by Rs. 85.95. As such it will be treated as the opening balance of suspense account and will be written on the debit side.
here is your journal entries but it is not in format
A) Merchant A/c ….Dr 4950
to suspense A/c 4950
B) Suspense A/c ….Dr 2124
to customer A/c 2124
C) Sales a/c ….Dr 26000
To sundry items A/c 26000
D) Sundry debtors …Dr 6000
to Suspense 6000
E) Suspense ….Dr 231
to Discount Received 231
I hope you are happy after getting answer