Question 31.
Trial Balance of a bookkeeper shows an excess of debits over credits by ₹ 261. This difference is placed in a Suspense Account to facilitate books closure. Later on the following errors were discovered:
(i) A credit item of ₹ 349 has been debited to a Personal Account as ₹ 439.
(ii) A sum of ₹ 625 written off from fixtures as depreciation has not been posted to the Depreciation Account.
(iii) ₹ 9,000 paid for furniture bought have been charged to the Purchases Account.
(iv) A discount allowed to a customer has been credited to him as ₹ 145 in place of ₹ 154.
(v) A sale of ₹ 594 was posted as ₹ 495 in the Sales Account.
(vi) The total of Returns Inward Book has been added ₹ 10 short.
Pass the Journal entries to correct these errors and prepare the Suspense Account.
Answers
Rectified Journal Entries with Suspense A/c
Explanation:
Journal:
i) Suspense A/c Dr. Rs.788
To Personal A/c Rs.788
(Being credit item wrongly debited now rectified)
ii) Depreciation A/c Dr. Rs.625
To Suspense A/c Rs.625
(Being depreciation on Fixtures not posted to depreciation A/c rectified)
iii) Furniture A/c Dr. Rs.9000
To Purchases A/c Rs.9000
(Being purchases of furniture debited to purchases A/c,rectified)
iv) Suspense A/c Dr. Rs.9
To Customer A/c Rs.9
(Being discount allowed wrongly credited rectified)
v) Suspense A/c Dr. Rs.99
To Sales A/c Rs.99
(Being sale wrongly posted,now rectified)
vi) Return Inwards A/c Dr. Rs.10
To Suspense A/c Rs.10
(Being return inwards undercasted,now rectified)
Suspense A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Personal A/c 788 By Balance b/d 261
To Customer A/c 9 By Depreciation A/c 625
To Sales A/c 99 By Return Inwards A/c 10
896 896