In taking out a Trial Balance, an Accountant finds an excess debit of ₹ 1,098. Being desirous of closing his books, he places the difference to Suspense A/c. Later on he detects the following errors:

In taking out a Trial Balance, an Accountant finds an excess debit of ₹ 1,098. Being desirous of closing his books, he places the difference to Suspense A/c. Later on he detects the following errors:-

(1) Goods purchased from Surinder for ₹ 350 has been credited to his account as ₹ 530.

(2) Goods sold to Dinesh for ₹ 800 have been debited to his account as ₹ 880.

(3) A cheque of ₹ 1,250 received from a debtor had been correctly entered in the cash book but posted to his Personal A/c as ₹ 1,200.

(4) ₹ 780, paid for freight on machinery purchased was debited to Frieght Account as ₹ 708.

(5) Goods to the value of ₹ 130 returned by a customer Navin Kumar had been posted to the debit of his account.

(6) ₹ 1,440 paid for repairs to Motor Car were debited to Motor Car A/c as ₹ 1,400.

(7) Total of purchase return book ₹ 500 was posted to the debit of Purchase A/c

Give necessary rectifying entries and prepare suspense account.

[Ans. Suspense A/c tallies; total of Suspense A/c ₹ 1,390.]

Solution:-