Write out the Journal Entries to rectify the following errors, using a Suspense Account. (1) Goods of the value of 15,000 returned by Mr. Aman were…
CA Foundation · Accounting · RTP · September 2025
Write out the Journal Entries to rectify the following errors, using a Suspense Account. (1) Goods of the value of 15,000 returned by Mr. Aman were entered in the Sales Day Book and posted therefrom to the credit of his account; (2) An amount of 7,500 entered in the Sales Returns Book, has been posted to the debit of Mr. Ashish, who returned the goods; (3) The total of “Discount Allowed” column in the Cash Book for the month of June, 2025 amounting to 27,500 was not posted, though correctly recorded in Debtors Account. (4) Bad Debts aggregating - 8,000 were written off during the year was not posted to Bad Debts Account. (5) A sale of 30,000 made to Ms. Aavya was correctly entered in the Sales Day Book but wrongly posted to the debit of Ms. Aadya as 3,000; (6) Supplier account has been overcast by - 225.
Suggested Answer and Working Notes:
Particulars L.F. Dr. ₹ Cr. ₹ (1) Sales A/c Dr. 15,000 Sales Returns A/c 15,000 To Suspense A/c (Goods returned by Mr. Aman wrongly posted to Sales and omission of debit to Sales Returns Account, now rectified) 30,000 (2) Suspense A/c Dr. 15,000 To Mr. Ashish (Wrong debit to Mr. Ashish for goods returned by him, now rectified) 15,000 (3) Discount A/c Dr. 27,500 To Suspense A/c (The total of Discount allowed during June, 2025 not posted from the Cash Book; error now rectified) 27,500 (4) Bad Debts A/c Dr. 8,000 To Suspense A/c (Bad Debts written off not posted to bad debts A/c, now rectified) 8,000 (5) Ms. Aavya Dr. 30,000 To Ms. Aadya 3,000 To Suspense A/c (Omission of debit to Ms. Aavya and wrong credit to Ms. Aadya for sale of 30,000, now rectified) 27,000 (6) Supplier A/c Dr. 225 To Suspense A/c (Supplier account overcast by 225now rectified) 225
Topics: Rectification of Errors
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