Question

The Trial Balance prepared by a book-keeper on 31.12.2008
showed excess credit of Rs. 240. This difference was transferred
to suspense account. The following errors were found You are
required to Pass Journal entries to rectify these errors, prepare
suspense account and show the effect on profit

Answer 1

rectified journal entries and suspense account

Answer 2

Answer:

Explanation:

    In the books of Journal entry

Particulars                  amount amount

Suspense A/c Dr.           240

    To, creditors A/C                   240

[ being excess credit transferred to suspense A/C ]

               

                   Suspense A/C

Particulars      amount amount     particulars             amount  amount

To, Creditors A/C           240        By balance c/d                         240        

                                        240                                                          240

In trial balance, If credit showed excess of Rs. 240 then, profit will decrease by Rs. 240