, b Machinery A/c Dr. To Purchases A/c (Purchase of machinery wrongly entered in the purchases book rectified) , , c Suspsense A/c Dr. To Mathi A/c (Excess amount posted to the debit of Mathi rectified) d Purchase returns A/c Dr. To Suspense A/c (Overcasting in the purchase returns book rectified) e Sales A/c Dr.
To Suspense A/c (Excess amount carried forward in the sales book rectified) Illustration (One-sided errors and two-sided errors with preparation of suspense account) A book-keeper finds that the debit column of the trial balance is short by ` and the difference is put to a suspense account. Subsequently, the following errors were located. (a) An entry for sale of goods on credit for ` to Mekala was posted to her account as ` . (b) ` being the monthly total of discount allowed to customers was credited to discount received account in the ledger.
(c) ` paid by Mannan was credited to Kannan account. (d) ` appearing in the cash book as paid for the purchase of stationery for office use has not been posted to ledger. (e) The purchases book was undercast by ` . Rectify the errors and prepare suspense account.
Accountancy Solution Rectifying entries L.F. Dr. ` Cr. ` a Suspense A/c Dr.
To Mekala A/c (Excess amount posted to Mekala account rectified) b Discount allowed A/c Dr. Discount received A/c Dr. To Suspense A/c (Discount allowed wrongly posted to discount received account rectified) c Kannan A/c Dr. To Mannan A/c (Wrong credit to Kannan account instead of Mannan account rectified) d Stationery A/c To Suspense A/c (Purchase of stationery not posted to stationery account rectified) e Purchases A/c Dr.
To Suspense A/c (Undercasting in the purchases book rectified) Suspense Account Cr. To Balance b/d To Mekala A/c By Discount allowed A/c By Discount received A/c By Stationery A/c By Purchases A/c (iv) Location and