In taking out a trial balance, a bookkeeper finds that he isout Rs 1600 excess d

Question

In taking out a trial balance, a bookkeeper finds that he isout Rs 1600 excess debit. Being desirous of closing his books, heplaces the difference to a newly opened suspense account. In thenext period he discovers the following discrepancies. a) An item of sale for Rs. 11800 was posted to the sales a/cas Rs.19000. b)The total of the sales returns book has been added Rs.200short. c)An amount of Rs.7400 received from a customer has beencredited to his account as Rs.14600. d)Rs.300000 paid for purchase building has been charged to theordinary purchase account. e) A sum of Rs.19000 written off from building a/c asdepreciation has not posted to depreciation a/c. f)An amount received from a debtor of Rs.19400 has been debtedto his account as Rs.15800. Required: Given rectifying entries and prepares a suspenseaccount. In taking out a trial balance, a bookkeeper finds that he isout Rs 1600 excess debit. Being desirous of closing his books, heplaces the difference to a newly opened suspense account. In thenext period he discovers the following discrepancies. a) An item of sale for Rs. 11800 was posted to the sales a/cas Rs.19000. b)The total of the sales returns book has been added Rs.200short. c)An amount of Rs.7400 received from a customer has beencredited to his account as Rs.14600. d)Rs.300000 paid for purchase building has been charged to theordinary purchase account. e) A sum of Rs.19000 written off from building a/c asdepreciation has not posted to depreciation a/c. f)An amount received from a debtor of Rs.19400 has been debtedto his account as Rs.15800. Required: Given rectifying entries and prepares a suspenseaccount.

Explanation / Answer

RECTIFYINGENTRIES:

JOURNAL

a.

b.

c.

d.

e.

1600

Sales

7200

200

7200

32000

19000

33600

33600

RECTIFYINGENTRIES:

JOURNAL

a.

Sales A/C 7200         SuspenseA/C 7200

b.

Sales Return A/C 200         SuspenseA/C 200

c.

Accounts Receivable A/C 7200         SuspenseA/C 7200

d.

Building A/C 300000           PurcasesA/C 300000

e.

Depreciation A/C 19000         SuspenseA/C 19000 SUSPENSEA/C Balance b/d

1600

Sales

7200

Sales Return

200

Accounts Receivable

7200

Balance c/d

32000

Depreciation

19000

33600

33600

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