Question

Question 49.
The bookkeeper of a firm found that his Trial Balance was out (excess credit) by ₹ 742. He placed the amount in a Suspense Account and subsequently found the following errors:
(i) A discount of ₹ 178 was allowed to Ramesh but in his account only ₹ 100 is recorded.
(ii) The total of the Purchases Book was ₹ 1,000 short.
(iii) A sale of ₹ 375 to Kohli was entered in the Sales Book as ₹ 735.
(iv) From the Purchases Book, Bose’s Account was debited with ₹ 175.
(v) Cash ₹ 250 received from Maitra against debt previously written off was credited to his account.
(vi) Purchase of office furniture worth ₹ 750 on credit from Delhi Furnitures was entered in the Purchases Book.
(vii) While carrying forward the total of the Sales Book from one page to another the amount of ₹ 11, 358 was written as ₹ 11,538.
(viii) The proprietor took goods of the value of ₹ 150 for his domestic consumption. No record of it has been made in the books.
(ix) Repairs bill for the proprietor’s personal car, ₹ 410, has been paid by the firm and debited to the Repairs Account.
(x) A sale to Kassim of ₹ 700 has been entered in the Purchases Book.
Rectify the errors by means of suitable Journal entries and show the Suspense Account.

Answer 1

Rectified Journal Entries for the given transactions with Suspense A/c

Explanation:

Journal:

1)   Suspense A/c         Dr. Rs.78

           To Ramesh A/c             Rs.78

  (Being Ramesh's A/c credited less by Rs.78 previously,now rectified)

2)   Purchases A/c       Dr. Rs.1,000

          To Suspense A/c          Rs.1,000

  (Being Purchases Book shortly credited before,now rectified)

3)   Sales A/c          Dr. Rs.360

            To Suspense A/c      Rs.360

  (Being Sales book overcast before,now rectified)

4)   Suspense A/c            Dr. Rs.350

               To Bose A/c               Rs.350

  (Being creditors wrongly debited before,now rectified)

5)   Maitra A/c      Dr. Rs.250

               To Bad debts Recovered A/c    Rs.250

  (Being Bad debts now recovered)

6)   Furniture A/c         Dr. Rs.750

              To Purchases A/c        Rs.750

  (Being Purchases book wrongly debited with Furnitures now rectified)

7)   Sales A/c          Dr. Rs.180

           To Suspense A/c      Rs.180

  (Being Sales book overcast rectified)

8)   Drawings A/c         Dr. Rs.150

                 To Purchases A/c        Rs.150

  (Being drawings omitted before,now recorded)

                                           Suspense A/c

Particulars            Amount(Rs.)         Particulars       Amount(Rs.)    

To Ramesh A/c       78                     By Purchases A/c  1000

To Sales A/c          360                    By Sales A/c           180

To Bose A/c          350                  

To Balance c/d     392

                                                                                                           

                               1180                                                    1180