Correct the following errors: (1) without Suspense Account and (2) with Suspense Account:
(i) Sales Book has been totalled Rs. 1,000 short.
(ii) Goods worth Rs. 1,500 returned by Green & Co, have not been recorded anywhere.
(iii) Goods purchased of Rs. 2,500 was posted to debit of the supplier, Ravi.
(iv) Furniture purchased from Gulab & Co. of Rs. 10,000 has been entered in Purchases Book.
(v) Cash received from Ankit Rs. 2,500 has not been posted in his account.
Also prepare Suspense Account.

Explanation

(1) Without Suspense Account:
(i) Since Sales Book has been casted (totalled) short by Rs. 1,000 Sales Account has been credited short by Rs. 1,000. The correcting entry is to credit the Sales Account by Rs. 1,000 as ''By wrong totalling of the Sales Book ..... Rs 1,000''.
(ii) To rectify the omission, Returns Inward Account has to be debited and the account of Green & Co. The entry:
`{:(,"Return Inward A/c",...Dr.,Rs. 1,500,),(,"To Green & Co.",,,Rs. 1,500):}`
(Being the goods returned by the firm, previously omitted from the Returns Inward Book)
(iii) Ravi has been debited Rs. 2,500 instead of being credited. His account should now be credited by Rs. 5,000 to remove the wrong debit and to give the correct credit. The entry will be on the credit side ''By error in posting .... Rs. 5,000''.
(iv) By this error, Purchases Account has been debited by Rs. 10,000 whereas the debit should have been to the Furniture Account. The rectifying entry will be:
`{:("Furniture A/c",...Dr.,Rs. 10,000,),("To Purchases A/c",,,Rs. 10,000):}`
(Being the correction of the mistake by which Purchases Account was debited instead of the Furniture Account)
(v) Cash received from Ankit of Rs. 2,500 has not been credited to his account. For the rectification of this error, Ankit's Account should be credited as follows:

(2) With Suspense Account:

Notes: 1. One should note that the opening balance in the Suspense Account will be equal to the difference in the Trial Balance.
2. It the question is silent as to whether a Suspense Account has been opened or not, the student should make his assumption, state it and then proceed.