Home | | Accountancy 11th std | Suspense account

Illustration, Solution | Accountancy - Suspense account | 11th Accountancy : Chapter 5 : Trial Balance

Chapter: 11th Accountancy : Chapter 5 : Trial Balance

Suspense account

After transferring all the ledger account balances, if the trial balance does not tally, steps must be taken to locate and rectify errors.

Suspense account

After transferring all the ledger account balances, if the trial balance does not tally, steps must be taken to locate and rectify errors. If the errors cannot be rectified, then trial balance is tallied by transferring the difference between the total of debit balances and the total of credit balances to a temporary account, called suspense account for timely preparation of the financial statements. If the trial balance shows lesser debit total, suspense account will be debited. Similarly, if the trial balance shows lesser credit total, suspense account will be credited. Later, when errors are located and rectified, the trial balance will get tallied.


Illustration 1

State whether the balance of each of the following accounts should be placed in the debit or the credit column of the trial balance:

1)  Sundry debtors

2)  Sundry creditors

3)  Cash in hand

4)  Bank overdraft

5)  Salary

6)  Discount allowed

7)  Plant and machinery

8)  Furniture

Solution



Illustration 2

From the following balances extracted from the books of Raju a trader on automobiles, prepare trial balance as on 31st March, 2017:


Solution



Illustration 3

From the following balances extracted from the books of Pearl, a trader, prepare trial balance as on 31st March, 2017.


Solution



Illustration 4

The following balances are extracted from the books of Murali, as on 31st March, 2017. Prepare trial balance.


Solution



Illustration 5

From the following balances extracted from the books of Ashok, a merchant of Chennai, prepare trial balance as on 31st December, 2017.


Solution



Illustration 6

Prepare trial balance as on 31st December, 2017 from the following balances of Balaraman.

Capital                 2,20,000     Repairs       2,400

Drawings              24,000                  Office lighting       2,600

Furniture              63,500                  Printing and stationery  2,700

Stock at the beginning   62,050        Bank loan   7,500

Bills receivable     9,500          Computer   25,000

Bills payable                  8,750          Debtors       46,500

Purchases             88,100                  Cash in hand        15,000

Sales                     1,35,450     Cash at bank        27,250

Discount allowed 7,100          General expenses 7,100

Discount received 3,500          Creditors    7,600

Solution



Illustration 7

The following balances are extracted from the books of Prabhu, as on 31st March, 2017.

Prepare trial balance and transfer the difference if any to suspense accoount.



Solution



Illustration 8

From the following balances extracted from the books of Chitra, prepare trial balance as on 31st March, 2017.


Solution



Illustration 9

The following trial balance has certain errors. Redraft it.


Solution



 

Tags : Illustration, Solution | Accountancy , 11th Accountancy : Chapter 5 : Trial Balance
Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail
11th Accountancy : Chapter 5 : Trial Balance : Suspense account | Illustration, Solution | Accountancy


Privacy Policy, Terms and Conditions, DMCA Policy and Compliant

Copyright © 2018-2023 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.