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.
31.12.2008.
a. The sales book total shows excess of Rs. 1,10
0
b. Goods sold to Raja RS.600 was credited to his account.
c. Goods purchased from Uma for Rs. 2,640 was posted to her
account as Rs. 640
d. Discount received account shows Rs. 60 short.
e. Rent paid to Land Lord Rs. 340 was debited to his personal
account.

Answer 1

Journal entries are:
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


Now, prepare suspense account from above entries.