Rectification problems

In a full rectification problem, go through the errors one by one. For each, write the wrong effect and the correct effect. The difference is the rectifying entry. If only one account is affected, the other side is Suspense.

Then draw up the Suspense Account. Put all the rectifying amounts in it. The suspense account works backwards: the figure that makes it close is the original difference in the trial balance. In the book, Rahul's suspense account received ₹4,500 and ₹3,000, both on the credit side. To close, it must have started with a debit balance of ₹7,500. A debit suspense balance was placed there because the trial balance's credit side was bigger by ₹7,500.

Another example: rectifications put ₹4,500 and ₹9,000 on the debit side of Suspense and ₹630 on the credit side, a net debit of ₹12,870. So Suspense must have opened with a credit of ₹12,870, meaning the trial balance originally had excess debit of ₹12,870.

Some tricky cases.

• Wrong book with three accounts: credit purchases recorded in the sales book, with the supplier correctly credited. Purchases got nothing and Sales got a wrong credit: Purchases A/c Dr, Sales A/c Dr, To Suspense A/c.
• Capital and revenue mixed up: wages paid for installing a machine debited to Wages. Installation is part of the machine's cost: Machinery A/c Dr, To Wages A/c. An old machine sold and credited to Sales: Sales A/c Dr, To Machinery A/c.
• Carry-forward errors change a book's total. If a page total of ₹1,200 was carried forward as ₹1,000 (−200), and on another page ₹5,000 was carried forward as ₹5,600 (+600), the book's total ends up overcast by ₹400 (600 − 200). Work out each change, then add them up.

Not every error passes through Suspense; only the one-sided ones do. If after all the corrections the suspense account still does not close (Anant Ram's still shows ₹17,400), the remaining balance is carried forward until the last error is found.