Slide 1:

The trial balance of N Ltd did not tally and the difference was placed in a suspense
account. Rectify the following & prepare suspense a/c A bill of exchange for Rs.26,500
accepted by R and discounted with the bank has been returned dishonoured. The
amount has then been debited to sales account. Goods bought on credit from K,
Rs.15,430 was entered in the sales book as 14,350. K’s a/c was debited with
Rs.13,450. A cheque of Rs.700 received for loss of stock by fire was credited to sales
a/c. Goods returned by S worth Rs.2,250 was entered in the Returns Outward book. S’s
a/c was credited with Rs.5,200.

Slide 2:
2. There was a difference in the trial balance of Gopal on 31.3.07 which was placed in a
suspense account. Subsequently the following mistakes were discovered. Rectify them
and prepare Suspense a/c:- (a)    Rs.760 received from M was posted to the debit of his
account. (b) Rs.1,500 being purchase returns, was posted to the debit of purchase
account. (c) Rs.574 paid for repairs to motor car, was debited to Motor car a/c as
Rs.174. (d) A sale of Rs.6,350 to S was entered in the sales book as Rs.5,630 (e) While
carrying forward the balance in K’s account the amount of Rs.250 was written on the
credit side instead of the debit side.

Slide 3:
Give rectifying entries for the following, assuming that the difference in the Trial Balance
has been placed in a Suspense account. Also, find out the balance in the suspense
account before rectification. i) Purchase of second hand machinery for Rs.75,000 has
been debited to Maintenance account. Of this amount, Rs.68,000 was the purchase
price and Rs.7,000 was for repairs. ii) A sale of Rs.12,000 to Parekh has been wrongly
entered in the Sales book as Rs.10,200. An amount of Rs.24,000 received from
Ramdas has been posted to the credit of Rameshdas as Rs.2,400.

Slide 4:
iv) An invoice for Rs.6,200 for goods purchased from Balu was entered in the Sales
returns book. In the ledger, this was debited to the a/c of Balu. v) The purchases book
was overcast by Rs.1,250. A sale of Rs.657 to Mohan was entered in the Sales book as
Rs.567, Mohan was debited with Rs.756. Rs.800 paid as freight on machinery was
debited to freight account as Rs.80. Bad debts amounting to Rs.700 were written off
during the year in the sales ledger but were not adjusted in the general ledger. The total
of the Sales book for a month Rs.2,28,000 has been omitted to be posted in the ledger.

Slide 5:
A book keeper, while balancing his books finds that he is out excess credit. Being
required to prepare the final accounts, he places the difference to a newly opened
suspense account which he carries forward to the next accounting year. In the next
accounting year the following mistakes were discovered:- (a) Goods bought from a
merchant amounting to Rs.500 had been posted to the credit of his account as Rs.5,500
(b) A dishonoured bill of exchange receivable for Rs.15,000 returned by the bank had
been credited to bank and debited to bills receivable account. (c) An item of Rs.710
entered in the sales returns book had been posted to the debit of the customer who
returned the goods.

Slide 6:
(d) Sundry items of plant sold amounting to Rs.7,260 have been entered in the sales
book. (e) An amount of Rs.3,260 owing by a customer had been omitted from the
schedule of sundry debtors. (f) Discount amounting to Rs.140 from a creditor had been
duly entered in his account but not posted to discount account.  Draft the journal entries
necessary for rectifying the above mistakes. Show the ultimate result on last year’s
profit and loss account.

Slide 7:
A firm found that its trial balance for March 2004 did not agree and placed the difference
in a suspense account. The next accounting year the following mistakes were
discovered:- (a) While carrying forward the figure of Rs.459 in the account of Y, a
creditor, it was written as Rs.450 on the debit side. (b) Sales of Rs.760 of office furniture
was entered in the sales book as Rs.670 and posted to the credit of the purchaser’s
account. (c) Cash received Rs.400 from N. Ray was debited to the account of M. Ray.
(d) Customs duty paid on plant and equipment Rs.2,500, was debited to general
expenses account as Rs.250. (e) Goods purchased from Ram Rs.1,500 was entered in
the sales book as Rs.1,050 and posted to the vendor’s account as Rs.1,050.