page was carried forward to page as Rs. , instead of Rs. , . (iv) Goods returned to Ram Rs.
, were recorded through sales book. (v) Credit purchases from M & Co. Rs. , were recorded through sales book.
(vi) Credit purchases from S & Co. Rs. , were recorded through sales book. However, S & Co.
were correctly credited. (vii) Salary paid Rs. , was debited to employee’s personal account. Solution Suspense A/c To Sales Return A/c (Sales returns book overcast by Rs.
, , now corrected). Purchases A/c To Suspense A/c (Purchases book undercast by Rs. , now corrected) (iii) Sales A/c To Suspense A/c (Error in carry forward of sales book, now corrected). Note : Errors in carry forward the total of one page to another during a period finally affects the total of that book resulting in error of under/overcastting.
In this case, carry forward from page to resulted in undercasting of Rs. and carry forward from page to page resulted in overcasting of Rs. . Overall overcastting being Rs.
– = Rs. . (iv) Sales A/c To Return Outwards A/c (Return Outwards wrongly recorded through sales book, now rectified). (v) Purchases A/c , Sales A/c , To M & Co.’s A/c , (Credit purchases wrongly recorded through sales book, now rectified).
(vi) Purchases A/c Sales A/c To Suspense A/c (Credit purchases wrongly recorded through sales book, however suppliers account correctly credited, now rectified). (vii) Salary A/c To Employee’s personal A/c (Salary paid wrongly debited to employee’s personal account, now corrected) Suspense Account Date Particulars Amount Date Particulars Difference as per trial balance Purchases Sales return Sales Purchases Sales , , Illustration Trial balance of Rahul did not agree. Rahul put the difference to suspense account. Subsequently, he located the following errors : Wages paid for installation of Machinery Rs.
was posted to wages account. Repairs to Machinery Rs. debited to Machinery account. (iii) Repairs paid for the overhauling of second hand machinery purchased Rs.
, was debited to