Pass the necessary journal entries to rectify the following errors, using a Suspense Account: (i) Goods of the value of 500returned by Mr. A were…

CA Foundation · Accounting · PYQS · September 2024
Pass the necessary journal entries to rectify the following errors, using a Suspense Account: (i) Goods of the value of 500returned by Mr. A were entered in the Sales Day Book and posted there from to the credit of his account; (ii) 250entered in the Sales Returns Book, has been posted to the debit of Mr. R, who returned the goods; (iii) A sale of 700made to Mr. Q was correctly entered in the Sales Day Book but wrongly posted to the debit of Mr. S as 70; (iv) The total of "Discount allowed" Column in the Cash Book for September amounting to 350 was not posted.

Suggested Answer and Working Notes:

Journal Particulars L.F. Dr. ₹ Cr. ₹ (1) Sales A/c Dr. 500 Sales Returns A/c Dr. 500 To Suspense A/c 1,000 (Being the value of goods returned by Mr. A wrongly posted to Sales and omission of debit to Sales Returns Account, now rectified) (2) Suspense A/c Dr. 500 To Mr. R 500 (Being wrong debit to Mr. R for goods returned by him, now rectified) (3) Mr. Q Dr. 700 To Mr. S 70 To Suspense A/c 630 (Being omission of debit to Mr. Q and wrong credit to Mr. S for sale of 700, now rectified) (4) Discount A/c Dr. 350 To Suspense A/c 350 (Being the total of Discount allowed during September not posted from the Cash Book; error now rectified)

Topics: Rectification of Errors

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic