Question

The Trial Balance prepared by Dhanraj did not tally and the difference was 
transferred to Suspense Account. Subsequently, the following errors were 
found. Rectify the errors and show the suspense Account. 
a) A sale of Rs. 1, 600 to Kamalnath was posted to Karunanath.
b) Insurance paid amounting to Rs 250 was posted twice. 
c) A sale of Rs 1,500 for old machinery was passed through the sale book. 
d) A purchase of Rs. 600 from Kamesh was not passed through the books. 
e) Rs. 80, the debit balance on commission account was omitted from the trial 
balance. 
f) The purchase returns book was undercast by Rs 700.

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Answer 1

Answer:

a) Kamalnath Dr. 1600

To Karunanath 1600

b) Suspense A/C Dr. 250

To Insurance A/C 250

c) Sales A/C Dr. 1500

To Old Machinery A/C 1500

d) Purchase A/C Dr. 600

To Kamesh 600

e) Commission A/C Dr. 80

To Suspense A/C 80

f) Suspense A/C Dr. 700

To Purchase Return A/C 700