Describe the functions of a Trial Balance

State the limitations of Trial Balance?

What are the uses/advantages of preparing Suspense Account?

What is a suspense account? Is it necessary that suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?

What kinds of errors would cause difference in the trial balance. Also List examples that would not be revealed by trial balances.

Rectify the following errors:
(i) Sold old furniture of A for Rs 11, 500 was passed through the Sales Book.
(ii) Credit purchases of Rs 12,000 from Ojas omitted to be recorded in the books.
(Hi) Repair made were debited to Building Account Rs 7,000.
(iv) Credit Sale of Rs 1,800 to Avikan was recorded as Rs 8,100.
(v) Rs 6,000 paid for office furniture was debited to office expense account.
(vi) A credit sale of goods of Rs.15,000 to Ramesh has been wrongly passed through the Purchases Book.

Pass entries to rectify the following errors:
(i) Purchased good from Ravi Rs 500 passed through sales book.
(ii) Only Rs 20 were recorded in Bill Receivable Book instead of Rs 200.
(iii) A repair to Plant amounting to Rs 1,000 has been changed to Plant & Machinery A/c.
(iv) A purchase of goods of Rs 2,000 has been wrongly debited to Furniture A/c.

Trial Balance of Rahul did not agree. Rahul put the difference to Suspense Account. Subsequently, he located the following errors:
(i) Wages paid for installation of Machinery Rs 600 was posted to Wages A/c.
(ii) Repairs to Machinery Rs 400 debited to Machinery A/c.
(iii) Repairs paid for the overhauling of second hand machinery purchased Rs 1,000 was debited to Repairs A/c.
(iv) Own business material Rs 8,000 and wages Rs 2,000 were used for construction of building. No adjustment was made in the books.
(v) Furniture purchased for Rs 5,000 was posted to Purchases A/c as Rs 500.
(vi) Old machinery sold to Karim at its Book value of Rs 2,000 was recorded through sales book.
(vii) Total of Sales Returns Book Rs 3,000 was not posted to the ledger. Rectify the above errors and prepare Suspense Account to ascertain the original difference in Trial Balance.

Rectify the following errors:
(i) Goods worth Rs 40,000 returned by Arvind were taken into stock, but no entry was passed in the books.
(ii) A credit purchase of goods worth Rs 8,200 from Priyanka was not passed in day book although the goods were taken into stock.
(iii) Goods costing Rs 500 (Sale price Rs 600) distributed as free sample were not recorded at all.

Pass necessary journal entries to rectify the following errors:
(i) Rs 200 paid for Rent wrongly debited to Miscellaneous Expenses A/c.
(ii) Salary of Rs 560 paid to clerk, has been debited to his Personal A/c.
(iii) Rs 100 paid as cartage for the newly purchased furniture, posted to Cartage A/c.
(iv) A sale of old machinery for Rs 1,200 has been credited to Sales A/c.
(v) Machinery purchased for Rs 20,000 was passed through the Invoice Book.