Repairs account. (iv) Own business material Rs. , and wages Rs. , were used for construction of building.
No adjustment was made in the books. (v) Furniture purchased for Rs. , was posted to purchase account as Rs. .
(vi) Old machinery sold to Karim at its book value of Rs. , was recorded through sales book. (vii) Total of sales returns book Rs. , was not posted to the ledger.
Rectify the above errors and prepare suspense account to ascertain the original difference in trial balance. Machinery A/c To Wages A/c (Wages paid for installation of machinery wrongly debited to wages account, now rectified) Repairs A/c To Machinery A/c (Repairs paid wrongly debited to machinery account now rectified) (iii) Machinery A/c To Repairs A/c (Repairs for overhauling of second hand machinery purchased, wrongly debited to repairs account, now rectified). (iv) Building A/c To Purchases A/c , To Wages A/c (Material and wages used for construction of Building, not debited to building account). (v) Furniture A/c To Purchases A/c To Suspense A/c , (Furniture purchased for Rs.
, wrongly debited to purchases account as Rs. , now rectified). (vi) Sales A/c To Machinery (Sale of machinery wrongly recorded in sales book, now rectified). (vii) Sales Return A/c , To Suspense A/c , (Total of sales returns book not posted to ledger, now rectified).
Suspense Account Date Particulars Amount Date Particulars Difference as per , Furniture , trial balance Sales return . , , Hence, original difference in Trial Balance was Rs. , excess on the Credit side. Illustration Trial balance of Anant Ram did not agree.
It showed an excess credit of Rs. , . He put the difference to suspense account. Subsequently the following errors were located: Cash received from Mohit Rs.
, was posted to Mahesh as Rs. , . Cheque for Rs. , received from Arnav in full settlement of his account of Rs.
, , was dishonoured. No entry was passed in the books on dishonour of the cheque. (iii) Rs. received from Khanna, whose account had previously been written