Page 240 - ISCDEBK-XI

21.28 Double Entry Book Keeping—ISC XI
(iv) Profit & Loss Adjustment A/c ...Dr. 650
To Manhad 650
(Being the salary paid to Manhad wrongly debited to his
Personal Account, now rectified)
(v) Suspense A/c ...Dr. 1,500
To Raghubir 1,500
(Being the goods purchased from Raghubir wrongly debited to
his account, now rectified)
(vi) Profit & Loss Adjustment A/c ...Dr. 2,250
To Suspense A/c 2,250
(Being the depreciation of furniture not posted to depreciation
account, now rectified)

Dr. SUSPENSE ACCOUNT Cr.
Particulars ` Particulars `

To Profit & Loss Adjustment A/c 8,000 By Balance b/d 7,250
To Raghubir 1,500 By Profit & Loss Adjustment A/c 2,250
9,500 9,500

Unsolved Questions

1. The book keeper of a firm found that his Trial Balance was out (excess credit) by ` 742. He placed the
amount in a Suspense Account and subsequently found the following errors:
(i) A discount of ` 178 was allowed to Ramesh but in his account only ` 100 is recorded.
(ii) The credit side of R. Ray’s Account in the Ledger has been overcast by ` 100.
(iii) A sale of ` 375 to Kohli was entered in the Sales Book as ` 735.
(iv) From the Purchases Book, Bose’s Account was debited with ` 175.
(v) Cash ` 250 received from Maitra against debt previously written off was credited to his account.
(vi) Purchase of office furniture worth ` 750 on credit from Delhi Furnitures was entered in the Purchases
Book.
(vii) While carrying forward the total of the Sales Book from one page to another the amount of ` 11,358
was written as ` 11,538.
(viii) The proprietor took goods of the value of ` 150 for his domestic consumption. No record of it has
been made in the books.
(ix) Repairs bill for the proprietor’s personal car, ` 410, has been paid by the firm and debited to the Repairs
Account.
(x) A sale to Kassim of ` 700 has been entered in the Purchases Book.
Rectify the errors by means of suitable Journal entries and show the Suspense Account.
2. A merchant while balancing his books finds that it is out with excess credit of ` 850. Being required to
prepare the final accounts, he places the difference to a newly opened Suspense Account which he carried
forward to the next year. In the next year, the following mistakes were discovered:
(i) A dishonoured bill of exchange receivable for ` 10,000 returned by the bank had been credited to the
Bank Account and debited to Bills Receivable Account.
(ii) Discount amounting to ` 50 from a creditor had been duly entered in his account but not posted to
Discount Received Account.
(iii) A cheque for ` 4,000 received from Amar was dishonoured and had been posted to the debit of Sales
Return Account.