Q.The Trial Balance of a trader as on 31st March 2025 did not agree; the difference was temporarily placed to a Suspense Account, which showed a debit balance of ₹1,850. On going through the books later, the following errors, both affecting only one account each, were located:

Since the Trial Balance has already been prepared and a Suspense Account already opened, both errors — each affecting only one real account — are rectified through that Suspense Account, not directly.

Rectifying journal entries

(a) Discount Allowed A/c Dr ₹1,200 To Suspense A/c ₹1,200

(Being discount allowed, correctly entered in the Cash Book but never posted to the Discount Allowed Account, now rectified.)

(b) Repairs A/c Dr ₹650 To Suspense A/c ₹650

(Being repairs to machinery, correctly entered in the Cash Book but never posted to the Repairs Account, now rectified.)

Both errors are one-sided: in each case, the amount was correctly entered in the Cash Book (so the Cash/Bank side of the transaction is fine), but the corresponding debit posting to the expense account (Discount Allowed, Repairs) was never made — leaving each of those two accounts understated on its debit side, which is exactly what caused the Trial Balance's debit column to fall short by the combined amount. Since the Trial Balance has already been prepared by the time these are found, each rectifying entry uses the Suspense Account in place of the missing second side.

Suspense Account

Always total the amounts credited to the Suspense Account through the rectifying entries and check that this total exactly equals the account's opening balance — if it does not, at least one more one-sided error rem …

A common mistake is crediting the Suspense Account and debiting the real account in the wrong order, or debiting the Suspense Account instead of crediting it. Since both real accounts here were UNDERSTATED on the debit side, the real account …