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In: Accounting

Q→1: In taking out a Trial Balance, a book-keeper finds that debit total exceeds the credit...

Q→1: In taking out a Trial Balance, a book-keeper finds that debit total exceeds the credit total by Rs.352. The
amount is placed to the credit of a newly opened suspense account. Subsequently, the following mistakes were
discovered.
You are required to pass the necessary entries for rectifying the mistakes and show the suspense account.
a. Sales Day book was overcast by Rs.100.
b. A Sales of Rs.50 to Ahmed was wrongly debited to Anwar.
c. General expenses Rs.18 was posted as Rs.80.
d. Cash Received from Kashif was debited to his account Rs.150.
e. While carrying forward the total of one page of the Purchase Day Book to the next, the amount of Rs. 1,235 was
entered as 1,325.

Solutions

Expert Solution

Prepare journal entries as follows:

Trn. Account Titles and Explanation Debit (₹) Credit (₹)
a) Sales 100
Suspense 100
(To record sales day book was overcast by $100, now rectified)
b) Ahmed Account 50
Anwar Account 50
(To record sales of Rs 50 to Ahmed wrongly debited to anwar, now rectified)
c) Suspense Account [80 -18] 62
General expense 62
(To record general expense of Rs 18 was posted at Rs 80, now rectified)
d) Suspense Account [150 × 2] 300
Kashif 300
(To record cash received from kashif was debited to his account, now rectified)
e) Suspense Account [1325 - 1235] 90
Purchase Account 90
(To record the total of purchases day book of Rs 1235 was entered as Rs 1325, now rectified)

___________________________________________________________

Suspense Account
Date Particulars Rs Date Particulars Rs
c) General Expense 62 Balance b/d 352
d) kashif 300 a) Sales A/c 100
e) Purchase 90
452 452

ekkarill92 answered 2 years ago
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