Question 40.
The Trial Balance of S. Sen did not agree and the difference in books as carried to a Suspense Account. Pass the entries required to rectify the following errors which accounted for the difference. Also, prepare the Suspense Account:
(i) A Sales Invoice for ₹ 1,000 for goods sold on credit to B. Basu was entered in the Purchases Book but in the Ledge, the amount was correctly debited to the account of B. Basu.
(ii) Goods bought on credit from Ram Lal for ₹ 1,500 were wrongly debited to his account as ₹ 5,100.
(iii) An amount of ₹ 275 was posted as ₹ 325 to the debit side of the Commission Account.
(iv) The Sales Book for the month of April was undercast by ₹ 100.
(v) ₹ 460 paid for building repairs was debited to the Building Account as ₹ 640.
Answers
Rectified Entries with Suspense A/c
Explanation:
In the books of Sen
Rectification Entries:
i) Suspense A/c Dr. Rs.2000
To Sales A/c Rs.1000
To Purchases A/c Rs.1000
(Being goods sold entered into Purchases rectified)
ii) Suspense A/c Dr. Rs.6600
To Ram Lal A/c Rs.6600
(Being goods bought from Ram lal wrongly debited now rectified)
iii) Suspense A/c Dr. Rs.50
To Commission A/c Rs.50
(Being commission Rs.275 wrongly debited,now rectified)
iv) Suspense A/c Dr. Rs.100
To Sales A/c Rs.100
(Being sales book undercasting rectified)
v) Building Repair A/c Dr. Rs.460
Suspense A/c Dr. Rs.180
To Building A/c Rs.640
(Being building repair of Rs.460 debited as 640 rectified)
Suspense A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Sales A/c 1000 By Balance c/d 8930
To Purchases A/c 1000
To Ram Lal A/c 6600
To Comm. A/c 50
To Sales A/c 100
To Building A/c 180
8930 8930