Pass the necessary Journal entries to rectify the following errors, using a Suspense Account: (i) Goods of the value of 500 returned by Mr. A were ...

Question

Pass the necessary Journal entries to rectify the following errors, using a Suspense Account: (i) Goods of the value of 500 returned by Mr. A were entered in the Sales Day Book and posted there from to the credit of his account; (ii) 250 entered in the Sales Returns Book, has been posted to the debit of Mr. R, who returned the goods; (iii) A sale of 700 made to Mr. Q was correctly entered in the Sales Day Book but wrongly posted to the debit of Mr. S as 70; (iv) The total of "Discount allowed" Column in the Cash Book for September amounting to 350 was not posted. [Sept. 2024, 4 Marks]

Accepted Answer

Option : Correct Option. Solution: Journal Entries S. No. Particulars Debit Credit 1 Sales Return A/c Dr. Sales A/c Dr. To Suspense A/ c (Being goods returned by Mr. A wrongly recorded in Sales book, now rectified) 500 500 - - 1,000 2 Suspense A/ c Dr. To Mr. R A/ c (Being goods returned by Mr. R and wrongly debited to his account, now rectified) 500 - - 500 3 Mr. Q A/ c Dr. To Mr. S A/ c To Suspense A/ c (Being sale of Rs. 700 to Mr. Q wrongly debited to Mr. S as Rs. 70, now rectified) 700 - - - 70 630 4 Discount allowed A/ c Dr. To Suspense A/ c (Being total of discount allowed column in cash book not posted, now rectified) 350 - - 350

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