The debit side of trial balance showed 1000/- less than the credit sid...
Suspense Account
Errors:
a) Goods return of 300 was entered in the customer's account but not posted to his account
b) Goods sold to X on credit for 700 was entered in sales book but not posted to his account
c) 580 paid by Y traders was credited to their account instead of being debited
d) 260 due from D was not entered in the schedule of S. Drs
e) Purchase book was overcast by 188
Solution:
Debit side of trial balance: 1000
Credit side of trial balance: 2000
As the debit side of the trial balance is short by 1000, a suspense account was created and debited by the same amount.
After detecting the errors, the following entries were made:
a) Customer's account was credited by 300 and goods return account was debited by 300
b) X's account was debited by 700 and sales account was credited by 700
c) Y traders' account was debited by 580 and cash account was credited by 580
d) Schedule of S. Drs was corrected by adding 260
e) Purchase book was corrected by reducing 188
The suspense account was credited by 1000 to balance the books.
Suspense Account
Particulars | Debit | Credit
---|---|---
To customer's account | 300 |
By goods return account | 300 |
To X's account | 700 |
By sales account | 700 |
To Y traders' account | | 580
By cash account | 580 |
| 260 |
| | 188
| 1000 |
By balance c/d | 1000 |
Conclusion:
The errors were corrected, and the suspense account was balanced. The final trial balance would now be prepared, including the corrected entries.
The debit side of trial balance showed 1000/- less than the credit sid...
In the suspense account,
items that should be debited are :
1. To balance b/d 1,000
2 To y traders a/c 72
3. To purchases a/c. 188
items should be credited are:-
1. By cus A/c. 300
2. By X's a/c 700
3. By s. drs a/c. 260
total of both dr and cr. side is 1260.
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