Trial Balance of Madan did not agree and he put the difference to Suspense Account. He discovered the following errors:

Trial Balance of Madan did not agree and he put the difference to Suspense Account. He discovered the following errors:

(a) Sales Returns book overcast by ₹ 800.

(b) Purchases returns to Sahu ₹ 2,000 were not posted to his account.

(c) Goods purchased on credit from Narula ₹ 4,000 though taken into stock, but no entry was passed in the books.

(d) Installation charges on new machinery purchased ₹ 500 were debited to sundry expenses account as ₹ 50.

(e) Rent paid for residential accommodation of Madan (the proprietor) ₹ 1,400 was debited to Rent A/c as ₹ 1,000.

Rectify the errors and prepare Suspense Account to ascertain the difference in Trial Balance.

[Ans. Opening Dr. Balance of Suspense Account ₹ 2,050; Total of Suspense Account ₹ 2,850.]