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Question No 32 Chapter No 17
32. The accountant of a firm finds that the Trial Balance as on 31st December, 2017 is out by as excess debit of 283. He placed the amount in the Suspense Account. In the first week of January, 2018, he discovered the following errors. Pass the Journal entries necessary to rectify these errors and show the Suspense Account as it would appear at the end of the week. Have you any comment to make?
(i) Cash paid to Amar Nath, 75, was posted to the credit of Amar Singh's Account as 57.
(ii) Discount allowed by Brijesh of 5 was not entered in the Cash Book but Brijesh stands debited correctly.
(iii) No entry was made of goods worth 40 taken away by the proprietor for personal use.
(iv) 500 received from Jhaveri Bros. for interest on a loan advanced to them were recorded in the Cash Book. But the entry was not posted in the Ledger. (v) The total of Returns Outward Book was short by 100
The solution of Question No 32 Chapter No 16:-
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| i | Amar Nath | Dr. | 75 | ||
| Amar Singh | Dr. | 57 | |||
| To Suspense A/c | 132 | ||||
| (Being Cash paid to Amar Nath Rs 75 was wrongly Credited to Amar Singh as Rs 57, now rectified) | |||||
| ii | Suspense A/c | Dr. | 5 | ||
| To Discount Received A/c | 5 | ||||
| (Being Discount Received by Brijesh was omitted to be recorded in a Discount column but was recorded in Brijesh’s Account, now rectified) | |||||
| iii | Drawings A/c | Dr. | 40 | ||
| To Purchases A/c | 40 | ||||
| (Being Goods Drawn by proprietor was not recorded, now recorded) | |||||
| iv | Suspense A/c | Dr. | 500 | ||
| To Interest on Advance A/c | 500 | ||||
| (Being Interest on Advances received from Jhaveri Bros was not posted into Ledger, now rectified) | |||||
| v | Suspense A/c | Dr | 100 | ||
| To Return Outwards A/c | 100 | ||||
| (Being Return Outwards Book undermasted, now rectified) | |||||
| Dr. | Suspense Account | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
|---|---|---|---|---|---|---|---|
| (iii) | Discount Received | 5 | Balance b/d | 283 | |||
| (iv) | Interest on Advances | 500 | (ii) | Amar Nath | 75 | ||
| (v) | Return Outwards | 100 | Amar Singh | 10 | |||
| Balance c/d | 190 | ||||||
| 605 | 605 | ||||||
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T.S. Grewal's Double Entry Book Keeping
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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