Mr. Kunal was unable to agree the Trial Balance last year and wrote off the difference to the Profit and Loss Account of that year. Next year, he…

Date Particulars Dr. ₹ Cr. ₹ (1) Scooter A/c Dr. 90,000 To Profit and Loss Adjustment A/c 90,000 (Purchase of scooter wrongly debited to conveyance account now rectified - capitalization of 90,000, i.e.,1,00,000 less10% depreciation) (2) Suspense A/c Dr. 2,00,000 To Profit & Loss Adjustment A/c 2,00,000 (Purchase Account overcast in the previous year error now rectified). (3) Profit & Loss Adjustment A/c Dr. 40,000 To Sandeep’s A/c 40,000 (Credit purchase from Sandeep’s - 20,000, entered as sales last year, now rectified) (4) Prem’s A/c Dr. 10,000 To Parag’s A/c 10,000 (Amount received from Mr. Parag’s wrongly posted to the account of Mr. Prem ; now rectified) (5) Suspense A/c Dr. 10,000 To C’s A/c 10,000 (₹ 5,000 received from C wrongly debited to his account; now rectified) (6) Trade receivables (Ramesh) / Ramesh A/c Dr. 5,000 To Suspense A/c 5,000 (₹ 5,000 due by Mr. Ramesh not taken into trial balance now rectified) (7) Ram’s A/c Dr. 20,000 To Profit & Loss Adjustment A/c 20,000 (Sales to Ram omitted last year; now adjusted) (8) Suspense A/c Dr. 1,980 To Profit & Loss Adjustment A/c 1,980 (Excess posting to purchase account last year,55,930, instead of 53,950, now adjusted) (9) Profit & Loss Adjustment A/c Dr. 2,71,980 To Kunal’s Capital A/c 2,71,980 (Balance of Profit & Loss Adjustment A/c transferred to Capital Account) (10) Kunal’s Capital A/c Dr. 2,06,980 To Suspense A/c 2,06,980 (Balance of Suspense Account transferred to Capital Account)