The trial balance of a trader did not agree and the difference was carried to a suspense account. The following errors were detected. Rectify the errors: Purchase of furniture for 2,750 passed through purchases Sales day book was undercast by 1,000. Discount allowed 125 was credited book to discount received account. Salaries paid 2,460 posted in salaries account as 4,200. Payment of a bill of 500 to Santosh passed through bills receivable account.
Answers
Answer:
Suspense A/c
Dr.
10,000
To Purchases A/c
10,000
(Purchase book was overcastted by Rs 10,000, now rectified)
(ii)
Purchases Return A/c
Dr.
1,000
To Suspense A/c
1,000
(Purchase return book was overcastted by Rs 1,000, now rectified)
(iii)
Purchases Return A/c
Dr.
100
To Suspense A/c
100
(Purchase return book’s balance was carried forward in excess of Rs 100, now rectified)
(iv)
Suspense A/c
Dr.
1,000
To Purchases A/c
1,000
(Purchase book’s balance was carried forward in excess of Rs 1,000, now rectified)
Answer:
Explanation:
Journal entry
- Furniture a/c dr. 2,750
To purchase a/c cr. 2,750
(furniture for 2,750 passed
through purchases)
- Suspense a/c dr. 1,000
To sales a/c cr. 1,000
(Sales day book was
undercast by 1,000)
- Discount allowed a/c dr. 125
- Discount received /c dr. 125
To suspense a/c cr. 250
(Discount allowed 125 was
credited book to discount
received account)
- Suspense a/c dr. 1,740
To salary a/c cr. 1,740
(Salaries paid 2,460
posted in salaries
account as 4,200)