paid to Kumanan) , , b Senguttuvan A/c Dr. To Cash A/c (Rent paid to Senguttuvan) , , c Cash A/c Dr. To Sales A/c (Furniture sold for cash) , , d Cash A/c Dr. To Kumararaja A/c (Goods sold to Kumararaja for cash) , , e Manimaran A/c Dr.
To Purchases A/c (Goods taken by the proprietor Mr. Manimaran for his personal use) , , . The accountant of a firm located the following errors after preparing the trial balance. Rectify them assuming that there is a suspense account.
(a) Machinery purchased for ` , was debited to purchases account. (b) ` , paid to Raina as salary was debited to his personal account. (c) Interest received ` was credited to commission account. (d) Goods worth ` , purchased from Amudhanila on credit was not recorded in the books of accounts.
(e) Used furniture sold for ` was credited to sales account. Accountancy . The book-keeper of a firm found that the trial balance was out by ` (excess credit). He placed the amount in the suspense account and subsequently found the following errors: (a) The total of discount column on the credit side of the cash book ` was not posted in the ledger.
(b) The total of purchases book was short by ` , . (c) A credit sale of goods to Natarajan for ` was entered in the sales book as ` . (d) A credit sale of goods to Mekala for ` was entered in the purchases book. You are required to give rectification entries and prepare suspense account.
( Answer : Total of suspense account: ` , ) To explore further Is there any possible way to reduce the errors in trial balance? Reference . M C Shukla, T S Grewal and S C Gupta, Advanced Accounts, th ed., , S.Chand Publishing, New Delhi. .
R L Gupta and V K Gupta, Financial Accounting, th ed., , Sultan Chand and Sons, New Delhi. . S P Jain and K L Narang, Advanced