Do as instructed (Activity)

Question 15 Marks

The trial balance of Radhika did not agree. Radhika put the difference to the suspense account. Subsequently, she located the following errors.
1. Furniture purchased for ₹ 6,000 was posted to the purchases account as ₹ 600.
2. Repairs to Machinery ₹ 500 were debited to the Machinery account.
3. Wages paid for the installation of Machinery ₹ 750 was posted to wages account.
4. Purchased material ₹ 8,000 and Wages ₹ 2,000 were used for construction of the building. No adjustment was made in the books.
5. Total of sales returns book ₹ 2,000 was not posted to the ledger.
6. Old Furniture sold to Dinesh at its book value of ₹ 2,500 was recorded through sales book.
Give journal entries and prepare Suspense Account.

Answer

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
(1)	Furniture A/c...................................... Dr.		6,000
	To Purchase A/c			600
	To Suspense A/c			5,400
	(Being the correction of posting wrongly made to Purchases A/c instead of Furniture A/c)
(2)	Repairs to Machinery A/c.................... Dr.		500
	To Machinery A/c			500
	(Being correction of wrong debit given to Machinery A/c for its repairs)
(3)	Machinery A/c.............................. Dr.		750
	To Wages A/c			750
	(Being correction of Wages A/c wrongly debited instead of Machinery A/c
(4)	Building A/c.......................................... Dr.		10,000
	To Suspense A/c			10,000
	(Being construction charges debited to Building A/c as no adjustment made
(5)	Suspense A/c....................................... Dr.		2,000
	To Customer's A/c			2,000
	(Being omitted posting to Customer's A/c now made by crediting its account)
(6)	Sales A/c......................................... Dr.		2,500
	To Furniture A/c			2,500
	(Being the correction of sale of furniture credited to Sales A/c)
	Total (₹)		21,750	21,750

Dr.	Suspense Account						Cr.
Date	Particulars	J.F.	Amt. (₹)	Date	Particulars	J.F.	Amt. (₹)
(5)	To Balance b/d (Bal. fig.)		13,400	(1)	By Furniture A/c		5,400
	To Customer's A/c		2,000	(4)	By Building A/c		10,000
					(Material 8,000 + Wages 2,000)
			15,400				15,400

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Question 25 Marks

The trial balance of Sagar did not agree. It showed an excess credit of ₹ 7,550. Sagar put the difference to the suspense account. He located the following errors:
1. Sales return book was overcast by ₹ 1,200.
2. Purchase book was undercast by ₹ 750.
3. Goods returned to Mahesh ₹ 1,000 were recorded through the sales book.
4. Credit purchases from Mahadev ₹ 6,000 were recorded through the sales book.
5. Credit purchases from Damodhar ₹ 4,000 were recorded through the sales book. However, Damodhar’s account was correctly credited.
6. Salary paid ₹ 3,500 was debited to the employee’s personal account.
Give journal entries to rectify the above errors and prepare Suspense Account.

Answer

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
(1)	Suspense A/c ........................ Dr.		1,200
	To Sales Return A/c			1,200
	(Being overcasting of Sales Return book rectified)
(2)	Purchases A/c ......................... Dr.		750
	To Suspense A/c			750
	(Being undercasting of Purchase book corrected)
(3)	Sales A/c ........................... Dr.		1,000
	To Purchase Return A/c			1,000
	(Being credit wrongly given to Sales A/c now corrected)
(4)	Sales A/c........................... Dr.		6,000
	Purchase A/c........................... Dr.		6,000
	To Mahadev's A/c			12,000
	(Being correction of purchases wrongly recorded in the Sales book)
(5)	Sales A/c............................... Dr.		4,000
	Purchases A/c.................... Dr.		4,000
	To Suspense A/c			8,000
	(Being the correction of purchases recorded wrongly through Sales Book)
(6)	Salaries A/c ........................ Dr.		3,500
	To Employee's A/c			3,500
	(Being the correction of Salary paid to employee wrongly debited to employee's A/c)
	Total (₹)		26,450	26,450

Dr.	Suspense Account						Cr.
Date	Particulars	J.F.	Amt. (₹)	Date	Particulars	J.F.	Amt. (₹)
(1)	To Balance b/d		7,550	(2)	By Purchases A/c		750
	To Sales Return A/c		1,200	(5)	By Sales A/c		4,000
				(5)	By Purchases A/c		4,000
			8,750				8,75

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Book Keeping & Accountancy Do as instructed (Activity)

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