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.
Answers
a. Kamal nath Account debi 1,600
Karunanath Account Credit 1,600
** Being sale to kamalnath was wrongly
posted to Karuna rectified now
b. Suspense Account Debit 250
Insurance Account Credit 250
*** Insurance paid posted twice now rectified.
c. Sale account Debit 1,500
Machinery Account credit 1,500
*** Sold machinery wrongly trf to sale book now rectified.
d. Purchase Account debit 600
Kamesh Account Credit 600
*** Purchase to kamesh not passed now rectified
e. Commission Account Debit 80
Suspense Account Credit 80.
***** Commission was not taken into Trial balance now rectified
f. Suspense Account Debit 700
Purchase Ret Account credit 700
*** Purchase return book under cast now rectified
Explanation:
Suspense Account
__________________________________________________________
To Insurance 250 By Commission 80
To Purchase Return 700 By Balance C/d 830