how sales book overcast by Rs 100 is a dedit entry..n suspense acc is to b credited?
Yes Priya is absolutely correct.
Overcasting of Sales Book implies that balance of sales book appearing in the books of accounts is more than actual balance of the Sales Book.
Let us understand this with the help of an example.
For Example: Balance of Sales as on March 31, 2014 is Rs 5,000 but during the year goods sold on credit were Rs 4,500. Now, we can see the difference of Rs 500 (5,000 - 4,500).
It is because the value of sales appearing in the book is more than the actual sales. Thus, to maintain its actual balance, a separate account is opened named as Suspense Account (an account to rectify one sided errors).
As sales have credit balance, so to nullify the excess credit of Rs 500, Sales Account is debited to Suspense Account.
I hope this clarifies your doubt.
Keep Posting!!
Overcasting of Sales Book implies that balance of sales book appearing in the books of accounts is more than actual balance of the Sales Book.
Let us understand this with the help of an example.
For Example: Balance of Sales as on March 31, 2014 is Rs 5,000 but during the year goods sold on credit were Rs 4,500. Now, we can see the difference of Rs 500 (5,000 - 4,500).
It is because the value of sales appearing in the book is more than the actual sales. Thus, to maintain its actual balance, a separate account is opened named as Suspense Account (an account to rectify one sided errors).
As sales have credit balance, so to nullify the excess credit of Rs 500, Sales Account is debited to Suspense Account.
I hope this clarifies your doubt.
Keep Posting!!