accounts, the entries, postings, castings, balancing of accounts and amounts carried forward are scrutinised to locate the errors. At this stage, every one-sided error is rectified by passing a rectifying journal entry with the respective account (debited or credited) and suspense account (credited or debited). The suspense account is used to rectify such errors so that the difference in trial balance placed to that account gets adjusted. Once all the one-sided errors are completely rectified, the balance in the suspense account gets eliminated.
Illustration The following errors were located after the preparation of the trial balance. Assume that there exists a suspense account. Rectify them. (a) Sale of goods on credit to Arun for ` posted to his account as ` .
(b) Bought goods from Lakshmi on credit for ` , credited to her account as ` . (c) Purchase of furniture from Abirupa for ` on credit was debited to furniture account as ` . (d) Purchased machinery for cash ` was not posted to machinery account. (e) The total of purchases book ` was carried forward as ` .
Solution Rectifying entries L.F. Dr. ` Cr. ` a Arun A/c Dr.
To Suspense A/c (Wrong amount posted to Arun account rectified) b Suspense A/c Dr. To Lakshmi A/c (Short credit to Lakshmi account rectified) Accountancy c Suspense A/c Dr. To Furniture A/c (Excess debit to furniture account rectified) d Machinery A/c Dr. To Suspense A/c (Omission to debit machinery account rectified) e Suspense A/c Dr.
To Purchases A/c (Excess amount carried forward to purchases account rectified) Illustration The following errors were located after the preparation of the trial balance. Assume that there exists a suspense account. Pass journal entries to rectify them. (a) The total of purchases book was undercast by ` .
(b) The total of the discount column on the debit side of cash book ` were not posted. (c) The total of one page of the sales book for ` ,