Page 139 - DEBK-XI(2020)

17.6 Double Entry Book Keeping — CBSE XI

5. In taking out a Trial Balance, a bookkeeper finds that the debit exceeds by ` 410.
Being desirous of closing his books he places the difference to a newly opened
Suspense Account. After recording the difference in the Suspense Account he
discovers that:
(i) A sum of ` 830 received from X was posted to his debit as ` 380.
(ii) ` 620 written off as depreciation of machinery has not been posted to the
Depreciation Account.
(iii) Bought goods for ` 10,000 for certain employees of the firm but the same was
debited to Purchases Account. The employees were paid their salaries after
deduction of the aforesaid sum and the net amount paid was posted to Salaries
Account.
(iv) A discount of ` 210 allowed to a customer has been credited to his account as
` 200.
(v) The total of the Sales Return Book has been added ` 10 short.
(vi) An item of ` 680 for sale was posted as ` 860 in the Sales Account.
Required: Pass the Journal entries for rectification of the above and show the Suspense
Account.
Solution: JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Suspense A/c ...Dr. 1,210
To X 1,210
(Being the amount of ` 830 received from X posted to his
debit as ` 380, now rectified)
(ii) Depreciation A/c ...Dr. 620
To Suspense A/c 620
(Being the omission of depreciation rectified)
(iii) Salaries A/c ...Dr. 10,000
To Purchases A/c 10,000
(Being the goods purchased for employees wrongly debited to
Purchases Account, now rectified)
(iv) Suspense A/c ...Dr. 10
To Customer’s A/c 10
(Being the short posting in Customer’s Account rectified)
(v) Returns Inward A/c ...Dr. 10
To Suspense A/c 10
(Being the undercasting of Sales Return Book rectified)
(vi) Sales A/c ...Dr. 180
To Suspense A/c 180
(Being the excess posting in Sales Account rectified)
Dr. SUSPENSE ACCOUNT Cr.
Particulars ` Particulars `
To X 1,210 By Difference in Trial Balance 410
To Customer’s A/c 10 By Depreciation A/c 620
By Returns Inward A/c 10
By Sales A/c 180
1,220 1,220