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An accountant, while balancing his books found that there was a difference of Rs. 85.95 in the trial balance. Being required to prepare the final accounts, he placed this difference to a newly opened suspense account which was carried forward to the next year, when the follwing errors were discovered. (i) Goods bought from a merchant for Rs. 5.50 had been posted to the credit of his account as Rs. 55. (ii) An item of Rs. 10.62 entered in the sales return book had been posted to the debit of the customer who returned the goods. (iii) Rs. 60 owing by a customer had been omitted from the schedule of sundry debtors. (iv) Rs. 2.31 discount received from a creditor had been duly entered in his account but not posted to discount received account. Give journal entries necessary to correct these errors and prepare the suspense account. |
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Answer» An accountant, while balancing his books found that there was a difference of Rs. 85.95 in the trial balance. Being required to prepare the final accounts, he placed this difference to a newly opened suspense account which was carried forward to the next year, when the follwing errors were discovered. (i) Goods bought from a merchant for Rs. 5.50 had been posted to the credit of his account as Rs. 55. (ii) An item of Rs. 10.62 entered in the sales return book had been posted to the debit of the customer who returned the goods. (iii) Rs. 60 owing by a customer had been omitted from the schedule of sundry debtors. (iv) Rs. 2.31 discount received from a creditor had been duly entered in his account but not posted to discount received account. Give journal entries necessary to correct these errors and prepare the suspense account. |
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