Question

19.Give the journal entries to rectify the following errors using suspense account, where necessary. i. Rs 3,000 received from a customer as an advance against order was credited to sales account. ii. A sum of Rs 800 written-off as depreciation on machinery, were not posted to depreciation account. iii. Purchase of a scooter was debited to conveyance account Rs 16,000. Firm charges 10% depreciation on vehicles. iv. Payment of Rs 500 to Mohan and Rs 600 to Sohan was made but Mohan was debited with Rs 600 and Sohan with Rs 500. v. Sales to X Rs 500 were posted to Y ’s account​

Answer 1

Explanation:

To rectify the errors using a suspense account, the following journal entries can be made:

i. Rs 3,000 received from a customer as an advance against order was credited to sales account.

To correct this error, we can make the following journal entry:

Debit Suspense Account 3,000

Credit Sales Account 3,000

ii. A sum of Rs 800 written-off as depreciation on machinery, were not posted to depreciation account.

To correct this error, we can make the following journal entry:

Debit Depreciation Account 800

Credit Suspense Account 800

iii. Purchase of a scooter was debited to conveyance account Rs 16,000. Firm charges 10% depreciation on vehicles.

To correct this error, we can make the following journal entries:

Debit Suspense Account 1,600

Credit Conveyance Account 1,600

Debit Depreciation Account 1,600

Credit Suspense Account 1,600

iv. Payment of Rs 500 to Mohan and Rs 600 to Sohan was made but Mohan was debited with Rs 600 and Sohan with Rs 500.

To correct this error, we can make the following journal entries:

Debit Suspense Account 100

Credit Mohan 600

Debit Sohan 500

Credit Suspense Account 100

v. Sales to X Rs 500 were posted to Y’s account

To correct this error, we can make the following journal entries:

Debit Y 500

Credit Suspense Account 500

Debit Suspense Account 500

Credit X 500