Q.Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in trial balance.
You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
Start your 14-day free trial to unlock the full solution →Each posting went to the correct account but on the wrong side (or wrong amount), so the wrong entry must be removed and the right one made — both legs land on the same account, making these one-sided errors settled against Suspense. The Suspense A/c opens with a credit balance ₹3,000 = the trial-balance difference (excess debit).
Concept & treatment. If an amount that should have been debited was credited (or vice-versa), rectify for twice the amount — once to cancel the wrong side, once to record the right side — with the contra to Suspense. Where the wrong amount also differs, combine the reversal and the correct posting.
Rectifying journal entries
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| (a) | Mohan A/c Dr. | 14,000 | ||
| To Suspense A/c | 14,000 | |||
| (b) | Suspense A/c Dr. | 15,000 | ||
| To Rohan A/c | 15,000 | |||
| (c) | Rakesh A/c Dr. | 8,000 | ||
| To Suspense A/c | 8,000 | |||
| (d) | Suspense A/c Dr. | 3,000 | ||
| To Mahesh A/c | 3,000 | |||
| (e) | Suspense A/c Dr. | 7,000 | ||
| To Sales A/c | 7,000 |
Suspense Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Rohan A/c | 15,000 | By Mohan A/c | 14,000 |
| To Mahesh A/c | 3,000 | By Rakesh A/c | 8,000 |
| To Sales A/c | 7,000 | By Balance b/d (difference) | 3,000 |
| Total | 25,000 | Total | 25,000 |
Working Notes
- (a) Mohan should be debited 7,000 but was credited 7,000 → debit Mohan 14,000 (7,000 to cancel + 7,000 correct); credit Suspense. …
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.