1.

Trialbalance of Madan did not agree and he put the difference to suspense account.He discovered the following errors: (a) Sales return book overcast by Rs 800. (b) Purchases return to Sahu Rs 2,000 were not posted. (c) Goods purchased on credit from Narula Rs 4,000 though taken into stock, but no entry was passed in the books. (d) Installation charges on new machinery purchased Rs 500 were debited to sundry expenses account as Rs 50. (e) Rent paid for residential accommodation of madam (the proprietor) Rs 1,400 was debited to Rent account as Rs 1,000. Rectifythe errors and prepare suspense account to ascertain the difference in trialbalance.

Answer»







Trial
balance of Madan did not agree and he put the difference to suspense account.
He discovered the following errors:

























(a)



Sales
return book overcast by Rs 800.



(b)



Purchases
return to Sahu Rs 2,000 were not posted.



(c)



Goods
purchased on credit from Narula Rs 4,000 though taken into stock, but no
entry was passed in the books.



(d)



Installation
charges on new machinery purchased Rs 500 were debited to sundry expenses
account as Rs 50.



(e)



Rent
paid for residential accommodation of madam (the proprietor) Rs 1,400 was
debited to Rent account as Rs 1,000.




Rectify
the errors and prepare suspense account to ascertain the difference in trial
balance.









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