DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : P. Sankara Rao
Designation : Lecturer
Branch : Commercial & Computer Practice
(CCP)
Institute : Govt. Polytechnic, Srikakulam
Year/Semester : I Year
Subject : Accountancy I
Subject Code : CCP102
Topic : Rectification of Errors
Duration : 50 Mts
Sub Topic : Suspense Account
Teaching Aids : PPT & Animation
CCP102.113 1
Objectives :

On completion of this period, you would be able to:

 Understand the errors of under debit, wrong

credit, wrong credit
 Rectify the above errors with the help of
suspense account

CCP102.113 2
Recap :

In the earlier class we have already learnt:

 Errors of excess debit, excess credit and under

credit
 Rectification of those errors with the help of
suspense account

CCP102.113 3
Under Debit :

 When any account is debited with less amount it

is known as under debit.
 To rectify those errors, debit the respective
account with the amount short and credit the
suspense account

CCP102.113 4
Wrong Debit :
 Sometimes a particular account is debited
instead of crediting
 To rectify the error credit the respective
account with double amount (actual credit &
cancellation of wrong debit) and debit the
suspense account

CCP102.113 5
Wrong Credit :
 Sometimes a particular account is credited
instead of debiting
 To rectify the error debit the respective account
with double amount (actual debit & cancellation
of wrong credit) and credit the suspense
account

CCP102.113 6
Example 1 :

Carriage Rs.600 debited to carriage a/c with Rs.60

Correct Entry:
Carriage a/c Dr 600
To Cash a/c 600
Error:
Instead of debiting carriage a/c with Rs.600 it
is debited with Rs.60 i.e., under debit with
Rs.540
CCP102.113 7
Rectification :

To rectify the error debit the carriage a/c and

credit the suspense a/c with difference amount

Rectification Entry:
Carriage a/c Dr 540
To Suspense a/c 540
(Being the carriage A/c undercast is
rectified)
CCP102.113 8
Example 2 :
Commission received Rs.780 debited to
commission a/c

Correct Entry:
Cash a/c Dr 780
To Commission a/c 780

Error:
Instead of crediting commission account
it is debited

CCP102.113 9
Rectification :
To rectify the error credit the commission
account with double amount and debit the
suspense account

Rectification Entry:
Suspense a/c Dr 1560
To Commission a/c 1560
(Being the wrong debit to commission A/c is
rectified)
CCP102.113 10
Example 3:
Cash paid to Sunitha Rs.900 credited to
Sunitha’s a/c

Correct Entry:
Sunitha a/c Rs.900
To cash 900

Error:
Instead of debiting Sunitha’s a/c, it is
credited

CCP102.113 11
Rectification :

To rectify the error, debit Sunitha’s account with

double amount and credit suspense account

Rectification Entry:
Sunitha a/c Dr 1800
To Suspense a/c 1800
(Being the wrong credit to Sunitha
Account now rectified)

CCP102.113 12
EXERCISE 1:

 In preparing Final Accounts for the year ended

31-12-90 a difference of Rs.147.12 excess
debit in Trial Balance was placed to Suspense
Account and carried forward
 In the next year the following errors in
connection with the previous year were
discussed

CCP102.113 13
1. A credit item Rs.190.06 was debited Lal’s
account.
2. Rs.1650/- for addition to Machinery was
debited to Repairs account.
3. The total Sales Returns Account was
undercast by Rs.10.
4. Rs.160/- written in Machinery depreciation was
not posted to depreciation Account.
5. An Item of sale of Rs.18 was posted as Rs.81
in the Sales Account.
CCP102.113 14
Solution :
1. Suspense A/c Dr 380.12
To Lal’s A/c 380.12
(Being wrong debit in Lal’s Account rectified)
1. Machinery A/c Dr 1650
To Repairs A/c 1650
(Being the entry rectified)
3. Sales Returns A/c Dr 10
To Suspense A/c 10
4. Depreciations A/c Dr 160
To Suspense A/c 160
(Being Depreciation A/c rectified)
5. Sales A/c Dr 63
To Suspense A/c 63
(Being excess credit given rectified)
CCP102.113 15
Dr.
Suspense Account
Cr.
Particulars Amount Particulars Amount

To Lal’s a/c 380.12 By difference in

books(Balancing 147.12
Figure)
By Sales returns 10.00
By Depreciation 160.00
By Sales 63.00
380.12 380.12
CCP102.113 16
Summary :
 When any account is debited with less amount -
“debit the respective account with the undercast
amount and credit the Suspense Account”

 When an account is debited instead of Credit –

“Credit the respective account with double
amount and debit the Suspense Account”

 When a Particular account is credited instead of

debit – “debit the respective account with double
amount and credit the Suspense Account”
CCP102.113 17
Assignment 1 :
Rectify the following errors with the help of
suspense account

4. Goods sold to Gopal Rs.600 credited to Gopal

a/c.
5. Cash paid to Nandan Rs.670 debited to Nanda
a/c with Rs.67.
6. Goods purchased from Raman Rs.590 debited
to Raman a/c.
CCP102.113 18
Assignment 2 :

Rectify the following errors with the help of

suspense account

4. Ananth paid cash Rs.1000 debited to Ananth

a/c.
5. Stationery Rs.500 credited to stationery a/c.
6. Commenced business with capital Rs.50,000
debited to capital a/c.

CCP102.113 19
Assignment 3 :

Rectify the following errors with the help of

suspense account

4. Naresh returned goods Rs.800 debited to

Naresh a/c.
5. Postage Rs.900 debited postage a/c with
Rs.90.
6. Repairs to building Rs.450 credited to repairs
a/c.
CCP102.113 20