Question

Veeran failed to balance his trial balance the credit side being more by Rs. 420. The difference is placed in a suspense a/c. Later on the following are discovered. Give rectifying entries and also prepare suspense A/c.

1. Sales Book was undercast by Rs. 100.

2. Goods for Rs. 300 purchased on credit from Raj was wrongly entered in the sales book. The account of Raj was correctly credited.

3. The sales return book was undercast by Rs. 30.

4. A credit item of Rs. 10 was wrongly debited to Renny’s account as Rs. 100.

Answer 1

Journal

Date	Particulars	LF	Debit	Credit
1.	Suspanse A/c   Dr   Sales A/c [Correcting entry for undercast in sales book]		100	100
2.	Sales A/c   Dr Purchase A/c   Dr   Suspense A/c [Rectifying entry for wrong credit given to sales A/c instead to debit to purchase A/c]		300 300	600
3.	Sales Return A/c   Dr   Suspense A/c		30	30
4.	Suspense Return A/c   Dr   Renny A/c [Correcting enrty for Wrong debit of Rs. 100 to Renny instead of credit of Rs. 10]		110	110

Suspense A/c

Particulars	Amount	Particulars	Amount
Balance b/d	420	Sales	300
Sales	100	Purchases	300
Renny	110	Sales returns	30
	630		630