Trial balance of John did not agree. He put the difference to suspense
account and discovered the following errors :
(a) In the sales book for the month of January total of page 2 was carried
forward to page 3 as Rs. 1,000 instead of Rs. 1200 and total of page 6
was carried forward to page 7 as Rs. 5,600 instead of Rs. 5,000.
(b) Wages paid for installation of machinery Rs. 500 was posted to wages
account as Rs. 50.
(c) Machinery purchased from R & Co. for Rs. 10,000 on credit was entered
in Purchase Book as Rs. 6,000 and posted there from to R & Co. as
Rs. 1,000.
(d) Credit sales to Mohan Rs. 5,000 were recorded in Purchases Book.
(e) Goods returned to Ram Rs. 1,000 were recorded in Sales Book.
(f) Credit purchases from S & Co. for Rs. 6,000 were recorded in sales
book. However, S & Co. was correctly credited.
(g) Credit purchases from M & Co. Rs. 6,000 were recorded in Sales Book
as Rs. 2,000 and posted there from to the credit of M & Co. as
Rs. 1,000.
(h) Credit sales to Raman Rs. 4,000 posted to the credit of Raghvan as
Rs. 1,000.
(i) Bill receivable for Rs. 1,600 from Noor was dishonoured and posted to
debit of Allowances account.
(j) Cash paid to Mani Rs. 5,000 against our acceptance was debited to
Manu.
(k) Old furniture sold for Rs. 3,000 was posted to Sales account as
Rs. 1,000.
(l) Depreciation provided on furniture Rs. 800 was not posted.
(m) Material Rs. 10,000 and wages Rs. 3,000 were used for construction
of building. No adjustment was made in the books.
Rectify the errors and prepare suspense to ascertain the difference in
trial balance.
Answers
Answer:
This is the best possible answer.
Answer:
Explanation:
JOURNAL ENTERIES
Sales A/c 400
To Suspense A/c 400
Machinery A/c 500
To wages A/c 50
To Suspense A/c 450
Machinery A/c 10000
Suspense A/c 5000
To Purchase A/c 9000
To R & Co. A/c 6000
Mohan A/c 10000
To Sales A/c 5000
To Purchase A/c 5000
Sales A/c 1000
To Purchase Return 1000
Purchase A/c 6000
Sales A/c 6000
To Suspense A/c 12000
Purchase A/c 6000
Sales a/c 2000
To suspense a/c 3000
To M&co A/c 5000
Raman A/c 4000
Raghavan a/c 1000
To suspense A/c 5000
Noor A/c 1600
To Allowance 1600
Bills Payable a/c 5000
To mani's A/c 5000
Depreciation a/c 800
to furniture A/c 800
Building A/c 13000
To purchase A/c 10000
To wages A/c 3000
Suspense Account
To Purchase A/c 5000 By Sales A/c 400
To Furniture A/c 2000 By Machinery A/c 450
To Bal c/d 13850 By Purchase a/c 6000
By sales A/c 6000
By Purchase A/c 3000
By Raman a/c 4000
By Raghavan A/c 1000
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