Chapter 17 – Rectification of Errors – TS Grewal 2022
Preparation of Suspense Account
Question 41
Q41. The Trial Balance of M/s. Gupta & Sons shows a difference of 52,200. To prepare the Final Account on 31st March, 2021, this difference is placed in a Suspense Account. Afterwards the following errors were disclosed. Pass the necessary entries to rectify them and show the Suspense Account.
(i) Purchases Book total had been undercasted by 20,000.
(ii) A cheque received from Vasudev for 7,800 had been debited in the Cash Book but not posted in Vasudev’s Personal Account.
(iii) Returns Outward Book had been overcasted by 10,000.
(iv) Goods returned by Yash Pal worth 15,000 have been entered in Returns Outward Book. However, Yash Pal’s Account is correctly posted.
Solution
The Trial Balance of M/s. Gupta & Sons – Q41
