Q.Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account:
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 transaction had one leg not posted — a one-sided error — so each is rectified against the Suspense Account. The Suspense A/c then shows an opening debit balance of ₹2,000, which is the amount by which the trial balance did not agree (₹2,000 excess credit).
Concept & treatment. When one account's posting is omitted, the trial balance disagrees and a Suspense Account absorbs the difference. To rectify, we post the missing amount to the correct account and the contra to Suspense. Debit postings that were omitted (Mohan, Rakesh, Ganesh) are supplied by "Account Dr. To Suspense"; credit postings that were omitted (Rohan, Mahesh, Sales) are supplied by "Suspense Dr. To Account".
Rectifying journal entries
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| (a) | Mohan A/c Dr. | 7,000 | ||
| To Suspense A/c | 7,000 | |||
| (b) | Suspense A/c Dr. | 9,000 | ||
| To Rohan A/c | 9,000 | |||
| (c) | Rakesh A/c Dr. | 4,000 | ||
| To Suspense A/c | 4,000 | |||
| (d) | Suspense A/c Dr. | 1,000 | ||
| To Mahesh A/c | 1,000 | |||
| (e) | Ganesh A/c Dr. | 3,000 | ||
| To Suspense A/c | 3,000 | |||
| (f) | Suspense A/c Dr. | 2,000 | ||
| To Sales A/c | 2,000 |
Suspense Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Rohan A/c | 9,000 | By Balance b/d (difference) | 2,000 |
| To Mahesh A/c | 1,000 | By Mohan A/c | 7,000 |
| To Sales A/c | 2,000 | By Rakesh A/c | 4,000 |
| By Ganesh A/c | 3,000 |
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.