Question

The Trial Balance of Saya Ltd. shows a difference of Rs. 680, being excess credit. To prepare the final accounts, this difference is placed in a suspense account. Afterwards, following errors were disclosed. Pass necessary entries to rectify them and prepare the suspense account.

The total of purchase book has been under cast by Rs. 350.

A cheque of Rs. 70 received from Gopal, had been debited in the cash book but not posted in Gopal’s personal account.

Sales book has been overcast by Rs. 120

Goods returned by Kamal Rs. 140, have been entered in the returns outward book. However, Kamal’s account is correctly posted.


please help me​

Answer 1

Answer:

1. Purchase A/c Debit Rs 350 Suspense A/c Credit Rs 350

2. Suspense A/c Debit Rs 70 Gopal A/c Credit Rs 70

3.Sales A/c Debit Rs 120 Suspense A/c Credit Rs 120

4. Return Inward A/c Debit Rs 140 Return Outward A/c Debit Rs 140 Suspense A/c Credit Rs 280

Explanation:

1. Purchase undercast, So Purchase to be increased.

2. Amount received from debtors but not recorded in debtor account.

3. Sales overcast, So Sales to be reduced.

4. Return inward recorded in return outward book.