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b q18 Dr. delay in the preparation of final accounts, the difference in the trail balance is placed to a newly opened 'suspense account to
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q18 Dr. delay in the preparation of final accounts, the difference in the trail balance is placed to a newly opened 'suspense account to tally trial balance. If the debit side of trial balance exceeds the credit side of trial balance difference should be put on credit side of suspense account. On the other hand if credit side of trial balance exceeds the debit side, suspense account should be debited. This is illustrated with the help of an example as given below- Example No.6: Prepare Suspense account from following information if: (A) Total of debit side of Trial Balance is 1,20,000 and that of credit side is 31,06,000. (B) Total of credit side of Trial Balance exceeds that of debit side by 21,500. Solution : (A) Suspense Account Cr. Date Particulars J.F. Amount (.) Date Particulars J.F.Amount (.) To Balance c/d 14,000 By Differance in 14,000 Books 14,000 14,000 Solution : (B) Dr. Suspense Account Cr. Date Particulars J.F. Amount (.) Date Particulars J.F.Amount.) To Differance in 21,500 To Balance c/d 21,500 Books 21,500 21,500 Illustration 7: Following Trial balance has been prepared by an trainee accountant. Prepare it again as per rules Trial Balance as on 31st March, 2016 Name of Ledger Account Debit (.) Name of Ledger Account Credit.) Opening Stock 3,000 Machinery 24,000 Capital 36,000 Furniture 2,000 Debtors 9,000 Good will 1,600 Creditors 12,000 Purchases 18,000 Bills Payble 2,000 Sales 27,000 Interest Received 1,600 Carriage in word 225 Purchase Return 900 Discount Received 300 Cash in Hand 12,000 Repair & Renewals 1,600 Salaries Stationary 75 Advertisement 600 Closing Stock 5,000 Bad Debts 900 79,800 79,800 1,800Step by Step Solution
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