How do we know whether the difference of trial balanceRs860 is on the debit or the credit side of the suspense account, when we have to rectify the following entries:4)A sum ofRs640owed by MrRishabhad not been included in the list of debtors 5) Account of Shiv had been debited withRs100on account of goods returned by him.
Hi Karan
It is always specified in the question whether the suspense account has debit balance or credit balance. Since it can have any of the balance.
Since in the given question, it is not specified, we cannot assume the side at which Rs 860 will be recorded.
The solution (without the preparation of suspense Account) is given in the following link:
https://www.meritnation.com/ask-answer/question/if-the-difference-of-trial-balance-is-860-rectify-and-prepa/trial-balance-and-rectification-of-errors/9664939
In case of further doubts, you can always get back to us.
It is always specified in the question whether the suspense account has debit balance or credit balance. Since it can have any of the balance.
Since in the given question, it is not specified, we cannot assume the side at which Rs 860 will be recorded.
The solution (without the preparation of suspense Account) is given in the following link:
https://www.meritnation.com/ask-answer/question/if-the-difference-of-trial-balance-is-860-rectify-and-prepa/trial-balance-and-rectification-of-errors/9664939
In case of further doubts, you can always get back to us.