(b) Goods bought from Pandey were returned back to him. It should have appeared on the debit side of his A/c. For rectifying we will need to debit his A/c with double the amount i.e. 1500 R 750 to cancel the wrong credit and another 750 to give effect for correct debit) and the effect will go to Suspense A/c. The correction entry is: Pandey A/C Dr. 1,500 07 To Suspense A/C 1,500 (c) Sale of furniture was recorded in sales book. What's wrong here? Remember that sales book records sale of goods only and nothing else, Sale of furniture will appear in either cash book (if sold for cash) or journal proper (if sold on credit). Hence, wrong credit to Sales A/c must be removed and credit should be given to Furniture A/c. It's important to note that this rectification entry will not affect the Suspense A/c. The correction entry is: Sales Alc Dr 26,000 To Furniture A/C 26,000 (d) The discount received from creditor is not entered in discount A/c but was correctly recorded in creditors' A/C. This is one sided error and will therefore be routed through suspense for correction. A discount is received; it must be credited being an income. Suspense A/C Dr 300 To Discount received A/C 300 Let us now see how suspense A/c will look like. Excess credit of? 1,700 in Trial Balance will be shown on the debit side of suspense A/c. This will bring in total debit equal to total credit. Dr Suspense Account Cr Date Particulars J. F. Amount() Date Particulars J. F. Amount () To Balance b/d 1.700 By Narayan 500 To Discount received 300 By Pandey 1,500 2,000 2.000 Please observe that after correcting passing all rectification entries, the Suspense A/c tallies automatically. illustration 30. Pass necessary journal entries to rectify the following errors: (a) An amount of 200 withdrawn by owner for personal use was debited to trade expenses. (b) Purchase of goods of ? 300 from Nathan was wrongly entered in sales book. (c) A credit sale of ? 100 to Santhanam was wrongly passed through purchase book. (d) ? 150 received from Malhotra was credited to Mehrotra. (e) 375 paid as salary to cashier Dhawan was debited to his personal A/C. (1) A bill of = 2,750 for extension of building was debited to building repairs A/C (g) Goods of 3 500 returned by Akashdeep were taken into stock, but retums were not posted. (h) Old furniture sold for 200 to Sethi was recorded in sales book