(i) Rectification of the purchase of a chair from Modern
Traders:
Purchase book is understated by Rs. 180 (530 - 350). So, we
need to debit the Purchase account and credit the Suspense account by Rs. 180.
Journal Entry:
Debit: Purchase Account
Rs. 180
Credit: Suspense Account
Rs. 180
(ii) Rectification of the sale to A. Mohan wrongly entered
in the purchase day book:
Purchase day book is overstated by Rs. 400. So, we need to
debit the Suspense account and credit the Sales account by Rs. 400.
Journal Entry:
Debit: Suspense Account
Rs. 400
Credit: Sales Account
Rs. 400
(iii) Rectification of the overcasting in the returns
outward book:
Returns outward book is understated by Rs. 500. So, we need
to debit the Returns Outward account and credit the Suspense account by Rs.
500.
Journal Entry:
Debit: Returns Outward Account Rs. 500
Credit: Suspense Account Rs. 500
(iv) Rectification of the incorrect entry for goods returned
by K. Mani:
Return Outward book is overstated by Rs. 750. So, we need to
debit the Suspense account and credit the Return Outward account by Rs. 750.
Journal Entry:
Debit: Suspense Account Rs. 750
Credit: Returns Outward Account Rs. 750
(v) Rectification of the undercast in the total of the
Purchase Day Book:
Purchase Day Book is understated by Rs. 1,000. So, we need
to debit the Suspense account and credit the Purchase Day Book account by Rs.
1,000.
Journal Entry:
Debit: Suspense Account
Rs. 1,000
Credit: Purchase Day Book
Rs. 1,000
(vi) Rectification of the wrong entry for Motor repairs:
Motor Repairs expenditure is understated by Rs. 760. So, we
need to debit the Motor Repairs account and credit the Motor Vans account by
Rs. 760.
Journal Entry:
Debit: Motor Repairs Account Rs. 760
Credit: Motor Vans Account Rs. 760
(vii) Completion of the double entry for the cheque received
from N. Balu:
A cheque received from N. Balu for Rs. 390 was debited in
the cash book, but the double entry was not completed. So, we need to credit
the Cash account and debit the Suspense account by Rs. 390.
Journal Entry:
Debit: Suspense Account
Rs. 390
Credit: Cash Account
Rs. 390
As we can see, the total debits and credits in the Suspense
Account are now equal. The balance in the Suspense Account, Rs. 660, represents
the amount that was initially entered in the suspense account when the
difference in the trial balance of Rs. 2,610 was identified.
To eliminate the suspense account, we can make one final
journal entry:
Journal Entry:
Debit: Suspense Account
Rs. 660
Credit: Profit & Loss A/c Rs. 660
With this entry, the Suspense Account will be reduced to
zero, and the profit and loss account will be adjusted by the same amount. The
books should now be correctly balanced, and the total of the Suspense Account
will be Rs. 3,000 (initial balance of Rs. 2,610 + additional Rs. 660).