9. Correct the following errors found in the books of Mr.Rajan.

The Trial
Balance was out by Rs.986, excess credit. The difference has been posted
to Suspense account .

i) A sale of Rs.400 to Kannan was wrongly credited to their

account.
ii) A purchase of Rs.134 had been posted to the creditors account as
Rs.120
iii) The total of returns inwards book for December had been case
Rs.200 short
iv) A cheque for R.400 received from Raja had been dishonored and
was posted to the debit of allowance Account.
Solution
Particulars Debit Rs Credit Rs
a Kannan A/c Dr 800
To suspense A/c 800
(Being correction of wrong credit)
b Suspense A/c Dr 14
To Creditors A/c 14
(Bing correction of Under cast)
c Return Inwards A/c Dr 200
To Suspense A/c 200
(Being correction of Under cast
d Raja a/c 400
To allowance A/c 400
Being correction of wrong debit)

Suspense account
Particulars Rs Particulars Rs
To Difference in Trial 986 By Kannan 800
balance
To creditors 14 B y Damages
1,000 1,000
10. A book keeper failed to balance his trial balance, the credit side exceed
the Debit side by Rs.1,750 . This amount was entered in a Suspense account
the following errors were discovered.

a) Good worth Rs.6,200 should to Rahim were correctly in the Sales

book, but posted to Rahim’s account as Rs.2,600

b) A credit balance of Rs. 7,550 of Rent Receivable account was shown

as Rs. 5,700

c) The total of returns outwards book amounting T Rs.2,000 was not

posted to ledger.

d) Goods worth Rs.1,000 purchased from Prema were wrongly entered

in the sales book. The account of Prema was correctly credited

e) The sales book was under cast Rs.1,000

f) The total of the credit side of Drivid’s account over cast by Rs.1,000

Give journal entries to rectify the above errors and prepare the suspense
account
Solution
Particulars Debit Rs Credit Rs
a Rahim A/c (6,200-2,600) Dr 3,600
To suspense A/c 3,600
(Being correction of wrong Post of
Rahim A/c)
b Suspense A/c (7,550-5,700) Dr 1,850
To Rent Receivable A/c 1,850
(Bing correction of Under cast of rent
receivable)
c Suspense A/c Dr 2,000
To Return Inwards A/c 2,000
(Being correction of not posted in
Return Inwards
d Purchase A/c Dr 1,000
Sales A/c Dr 1,000
To Suspense A/c 2,000
(Being correction of wrong entry of
sales book)
e Suspense A/c Dr 1,000
To Sales A/c 1,000
( Being correction of under cast of sale
book)
f Dravid A/c Dr 1,000
To Suspense A/c
(Being correction of over cast of Dravid
A/c)

Suspense account
Particulars Rs Particulars Rs
To Difference in Trial 1,750 By Rahim A/c 3,600
balance
To Rent Receivable A/c 1,850 B y Purchase A/c 1,000
To Return Inwards A/c 2,000 By Sales A/c 1,000
To Sales A/c 1,000 By Dravid A/c 1,000

6,600 6,600