Rectify the following errors and prepare a suspense account :-
a) Goods returned to Archi 8000 were recorded in Return Inward book. However Archis’s account was correctly debited.
b) Cash sales 2000 were posted to commission account as 200.
c) Cash received from Raja 5000 was posted to the debit of Rani as 6000
d) Repairs on Machinery 1400 debited to Machinery as 2400
e) Credit sales to Gopal 10000 were recorded in Purchase book .
Answers
Answer:
Goods returned to Archi 8000 were recorded in Return Inward book. However Archis’s account
Answer:
Explanation:
RECTIFIED JOURNAL ENTRIES
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- Suspense a/c dr. 16,000
To Purchase return a/c cr. 8,000
To Sales return a/c cr. 8,000
( goods returned to supplier were
posted as sales return , supplier
a/c was correctly posted)
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- Commission a/c dr. 200
To sales a/c cr. 200
(Cash sales 2000 were posted
to commission account as 200)
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- Raja a/c dr. 5,000
- Suspense a/c dr. 1,000
To Rani a/c cr. 6,000
(Cash received from Raja 5000
was posted to the debit of
Rani as 6000)
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- Suspense a/c dr. 1,000
To Machinery a/c cr. 1,000
(Repairs on Machinery 1400
debited to Machinery as 2400)
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- Suspense a/c dr. 20,000
To Sales a/c cr. 10,000
To Purchase a/c cr. 10,000
(Credit sales to Gopal 10000
were recorded in Purchase book)
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