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17.6                                                   Double Entry Book Keeping—CBSE XI

                      5.  In taking out a Trial Balance, a bookkeeper finds that the debit exceeds by ` 410.
                        Being desirous of closing  his books he places the difference  to a newly opened
                        Suspense  Account.  After recording  the  difference  in  the  Suspense  Account  he
                        discovers that:
                          (i)  A sum of ` 830 received from X was posted to his debit as ` 380.
                         (ii)  ` 620 written off as depreciation of machinery has not been posted to the
                             Depreciation Account.
                         (iii)  Bought goods for ` 10,000 for certain employees of the firm but the same was
                             debited to Purchases Account. The employees were paid their salaries after
                             deduction of the aforesaid sum and the net amount paid was posted to Salaries
                             Account.
                         (iv)  A discount of ` 210 allowed to a customer has been credited to his account as
                             ` 200.
                          (v)  The total of the Sales Return Book has been added ` 10 short.
                         (vi)  An item of ` 680 for sale was posted as ` 860 in the Sales Account.
                     Required: Pass the Journal entries for rectification of the above and show the Suspense
                     Account.
                     Solution:                            JOURNAL
                     Date     Particulars                                          L.F.   Dr. (`)   Cr. (`)
                       (i)   Suspense A/c                                    ...Dr.       1,210
                               To  X                                                              1,210
                             (Amount of ` 830 received from X posted to his
                             debit as ` 380, now rectified)
                       (ii)   Depreciation A/c                               ...Dr.         620
                                To  Suspense A/c                                                   620
                             (Omission of depreciation rectified)
                       (iii)   Salaries A/c                                  ...Dr.       10,000
                                To  Purchases A/c                                                10,000
                             (Goods purchased for employees wrongly debited to
                             Purchases Account, now rectified)
                       (iv)   Suspense A/c                                   ...Dr.         10
                                To  Customer’s A/c                                                  10
                             (Short posting in Customer’s Account rectified)
                       (v)   Returns Inward A/c                              ...Dr.         10
                                To  Suspense A/c                                                    10
                             (Undercasting of Sales Return Book rectified)
                       (vi)   Sales A/c                                      ...Dr.         180
                                To  Suspense A/c                                                   180
                             (Excess posting in Sales Account rectified)
                     Dr.                              SUSPENSE ACCOUNT                                Cr.
                     Particulars                         `      Particulars                        `
                     To  X                               1,210   By  Difference in Trial Balance      410
                     To  Customer’s A/c                    10   By  Depreciation A/c               620
                                                                By  Returns Inward A/c              10
                                                                By  Sales A/c                      180
                                                         1,220                                    1,220
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