Question - b Someone can solve this please

Rohit · 2 Jun 2024

I hop helpful

Rohit · 2 Jun 2024

resolving the discrepancies found by the merchant: 1. **Initial Discrepancy**: - Excess credit of ₹280 placed in a suspense account. 2. **Error (a)**: Incorrect posting of goods bought from Mr. Ghosh. - Correct entry: Debit Purchases ₹50, Credit Mr. Ghosh ₹50. - Wrong entry: Credit Mr. Ghosh ₹550. - Adjustment: - Debit Mr. Ghosh ₹500 (to correct the error). 3. **Error (b)**: Dishonored Bill of Exchange receivable. - Correct entry: Debit Bank Account ₹2,000, Credit Bills Receivable ₹2,000. - Wrong entry: Credit Bank Account ₹2,000, Debit Bills Receivable ₹2,000. - Adjustment: - Debit Bank Account ₹2,000. - Credit Bills Receivable ₹2,000. 4. **Impact on Suspense Account**: - Initial balance: ₹280 credit. - Adjustment from Error (a): Debit Mr. Ghosh ₹500. - Resulting in a new debit balance of ₹220 in the suspense account. 5. **Correcting Entries Summary**: - Debit Mr. Ghosh ₹500. - Debit Bank Account ₹2,000. - Credit Bills Receivable ₹2,000. These adjustments ensure the books are balanced correctly.

Neha · 1 Jun 2024

Can you please explain?