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 entires to rectify these errors prepare suspense account and show the effect on profit. a.the sales book total show excess of rs.1,100b.goods sold to raja rs.600 was credited to his accountc.goods purchased from uma for rs.2,640 was posted to her account as rs.640 d.discount received account show rs.60 short e.rent paid to land Lord rs.340 debited to his personal account

Answer 1

"The general entries will be as follows for the given query:

a. Sales account Dr. 1,100

To Suspense account

b. Raja account Dr. 600

To Sales account

c. Suspense account Dr. 2,000

To Uma account

d. Suspense account Dr. 60

To Discount received account

e. Rent expense account Dr. 340

To Landlord account

This statements can be as per the total amount distribution also.

"