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Rectification of Errors 21.9
Solution: In the Books of R.K. Sharma
RECTIFYING JOURNAL ENTRIES
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Returns Inward A/c ...Dr. 2,000
To Suspense A/c 2,000
(Being the Returns Inward Book cast short by ` 2,000, now rectified)

(ii) Furniture A/c ...Dr. 10,000
To Purchases A/c 10,000
(Being purchase of office table passed through the Purchases Day Book,
now rectified)
(iii) Furniture A/c ...Dr. 7,500
To Wages A/c 7,500
(Being wages paid for making showcases wrongly debited to Wages
Account, now rectified)

(iv) Suspense A/c ` (1,340 – 600) ...Dr. 740
To Creditor’s A/c 740
(Being purchases of ` 1,340 wrongly credited to Creditor’s Account for ` 600,
now rectified)
(v) P.C. Jain ...Dr. 4,000
To Allowances A/c 4,000
(Being a cheque received from P.C Jain dishonoured but debited to
Allowances Account, now rectified)

Dr. SUSPENSE ACCOUNT Cr.
Particulars ` Particulars `
To Difference in Trial Balance 1,860 By Returns Inward A/c 2,000
To Creditor’s A/c 740 By Balance c/d (Note) 600
2,600 2,600

Note: The balance in the Suspense Account indicates that there are still some undetected errors in the books.

Illustration 7.
The Trial Balance extracted from a set of books of B.K. Banerjee showed a difference which was
placed in a Suspense Account. Subsequently, following mistakes were detected:
(i) A cheque for ` 1,000 received from Raj was dishonoured and returned by the bank had
been credited to the Bank Account and debited to Sundry Creditors Account.
(ii) Several items of furniture sold for ` 5,000 had been entered in the Sales Day Book.
(iii) Goods purchased from V.K. Gupta for ` 310 had been posted to the debit of his Account
as ` 130.
(iv) ` 1,200 for goods sold on credit to Ajeet had been omitted to be entered in his account.

Show the necessary entries to rectify these errors and also indicate the amount of the difference
in the Trial Balance.