Trial balance of Anuj did not agree. It showed an excess credit of ₹ 6,000. He put the difference to suspense account. He discovered the following errors: Rectify the errors and prepare suspense account.
Cash received from Ravish ₹ 8,000 posted to his account as ₹ 6,000.
Returns inwards book overcast by ₹ 1,000.
Total of sales book ₹ 10,000 was not posted to Sales account.
Credit purchases from Nanak ₹ 7,000 were recorded in sales Book. However, Nanak’s account was correctly credited.
Machinery purchased for ₹ 10,000 was posted to purchases account as ₹ 5,000.
Explanation
The trial balance showed excess credit of ₹6,000, so Suspense A/c was opened with a debit balance. Each error was analyzed for its effect on the trial balance. Errors (a), (b), and (c) required debit to Suspense (they caused excess debit situations). Errors (d) and (e) required credit to Suspense (they caused excess credit situations). The Suspense Account balances at ₹19,000 on both sides.