(a) The following errors were located after the preparation of the trial balance. Assume that there exists a suspense account. Pass journal entries to rectify them.
(i) The total of purchase book was undercast by ₹ 100.
(ii) The total of the discount column on the debit side of c

Question

(a) The following errors were located after the preparation of the trial balance. Assume that there exists a suspense account. Pass journal entries to rectify them.
(i) The total of purchase book was undercast by ₹ 100.
(ii) The total of the discount column on the debit side of cash book ₹ 575 was not posted.
(iii) The total of one page of the sales book for ₹ 5,975 was carried forward to the next page as ₹ 5,795.
(iv) Salaries ₹ 1,800 was posted as ₹ 18,000.
(v) Purchase of goods on credit from Mukilan for ₹ 150 has been posted to his account as ₹ 1,500.

OR

(b) Explain the various types of accounting software.

Accepted Answer

>

> [!TLDR]
> (a) Five rectifying journal entries through the suspense account. (b) Ready-made, customised and tailor-made accounting software explained.
>
> ## (a) Rectifying journal entries (suspense account exists)
>
> | No. | Particulars | L.F. | Debit ₹ | Credit ₹ |
> | --- | --- | --- | --- | --- |
> | (i) | Purchases A/c Dr | | 100 | |
> | | To Suspense A/c | | | 100 |
> | | (Being purchase book undercast by ₹100, now corrected) | | | |
> | (ii) | Discount Allowed A/c Dr | | 575 | |
> | | To Suspense A/c | | | 575 |
> | | (Being total of discount column on debit side of cash book not posted) | | | |
> | (iii) | Suspense A/c Dr | | 180 | |
> | | To Sales A/c | | | 180 |
> | | (Being sales book total ₹5,975 carried forward as ₹5,795, short by ₹180) | | | |
> | (iv) | Suspense A/c Dr | | 16,200 | |
> | | To Salaries A/c | | | 16,200 |
> | | (Being salaries ₹1,800 wrongly posted as ₹18,000, excess ₹16,200) | | | |
> | (v) | Mukilan A/c Dr | | 1,350 | |
> | | To Suspense A/c | | | 1,350 |
> | | (Being credit purchase ₹150 from Mukilan posted to his account as ₹1,500, excess credit ₹1,350) | | | |
>
> Working notes: (iii) 5,975 − 5,795 = ₹180 short-carried; (iv) 18,000 − 1,800 = ₹16,200 excess debit; (v) 1,500 − 150 = ₹1,350 excess credit to Mukilan (a creditor). Each of these is a one-sided error, so the other leg is completed through the suspense account.
>
> ## (b) Types of accounting software
>
> 1. **Ready-made (readymade / packaged) software** — Standardised programs developed for sale to the general public, e.g. Tally, Busy. They are cheap, easy to install and suitable for small and medium businesses whose needs are common. Limited flexibility.
> …

Q.(a) The following errors were located after the preparation of the trial balance. Assume that there exists a suspense account. Pass journal entries to rectify them.

Concept understanding — Suspense Account

(a) Rectifying journal entries (suspense account exists)

(b) Types of accounting software

No.	Particulars	Debit ₹	Credit ₹
(i)	Purchases A/c Dr	100
	To Suspense A/c		100
	(Being purchase book undercast by ₹100, now corrected)
(ii)	Discount Allowed A/c Dr	575
	To Suspense A/c		575
	(Being total of discount column on debit side of cash book not posted)
(iii)	Suspense A/c Dr	180
	To Sales A/c		180
	(Being sales book total ₹5,975 carried forward as ₹5,795, short by ₹180)
(iv)	Suspense A/c Dr	16,200
	To Salaries A/c		16,200
	(Being salaries ₹1,800 wrongly posted as ₹18,000, excess ₹16,200)
(v)	Mukilan A/c Dr	1,350
	To Suspense A/c		1,350
	(Being credit purchase ₹150 from Mukilan posted to his account as ₹1,500, excess credit ₹1,350)

Q.(a) The following errors were located after the preparation of the trial balance. Assume that there exists a suspense account. Pass journal entries to rectify them.

(a) Rectifying journal entries (suspense account exists)

(b) Types of accounting software

🎓Unlock everything free for 14 days

Unlock everything free for 14 days