In the books of Ratan
Journal Entries
S. No. Particulars Debit Credit
1 Motor Vehicles A/ c Dr.
To Profit & Loss Adjustment A/ C
(Purchase of scooter wrongly debited to
conveyance account now rectified; capitalisation
of Rs. 27000, i.e., Rs. 30,000 less 1096 depreciation)
27,000
-
-
27,000
2 Suspense A/ c Dr.
To Profit & Loss Adjustment A/ c
(Purchase account overcast in the previous year;
error now rectified)
1,00,000
-
-
1,00,000
3 Profit & Loss Adjustment A/ c Dr.
To Mr. X A/c
(Credit purchase from Mr. X Z 20,000 entered as
sales last year; now rectified.)
40,000
-
-
40,000
4 Mr. Bhaskar A/ c Dr.
To Mr. Anand A/c
(Amount received from Mr. Anand wrongly posted
to the account of Mr. Bhaskar ; now rectified.)
10,000
-
-
10,000
5 Suspense A/c Dr.
To Mr. Chandu's A/ c
(Rs. 5000 received from Mr. Chandu Wrongly
debited to his account; now rectified.)
10,000
-
-
10,000
6 Trade Receivable A/ c Dr.
To Suspense A/ c
(Rs. 5000 due by Mr. Ramesh not taken into trial
balance; now rectified.)
5,000
-
-
5,000
7 Mr. Ram's A/c Dr.
To Profit & Loss Adjustment A/ c
(Sales to Mr. Ram omitted last year; now adjusted)
20,000
-
-
20,000
8 Suspense A/ c Dr.
To Profit & Loss Adjustment A/ c
1,980
-
-
1,980
(Excess posting to purchase account last year, Rs.
25,930 instead of Rs. 23,950, now adjusted.)
9 Profit & Loss Adjustment Al c Dr.
To Ratan's Capital Al c
(Balance of Profit & Loss Adjustment Al c
transferred to Mr. Ratan's Capital Al c)
1,08,980
-
-
1,08,980
10 Ratan's Capital Al c Dr.
To Suspense Al c
(Balance of Suspense Al c transferred to Mr. Ratan
Capital Al c )
1,06,980
-
-
1,06,980
Working Notes:
Profit & Loss Adjustment A/ c
Particulars Amount Particulars Amount
To Mr. X's Al c 40,000 By Motor Vehicles A/ c 27,000
To Mr. Ratan's Capital A/ c
(transferred)
1,08,980 By Suspense A/ c 1,00,000
By Mr. Ram A/ c 20,000
By Suspense A/ c 1,980
Total 1,48,980 Total 1,48,980
Suspense A/ c
Particulars Amount Particulars Amount
To Profit & Loss Adjustment A/c 1,00,000 By Trade Receivable A/ c 5,000
To Mr. Chandu's A/c 10,000 By Ratan's Capital A/c
(transferred)
1,06,980
To Profit & Loss Adjustment
A/c
1,980
Total 1,11,980 Total 1,11,980