Question

When preparing a trail balance, the bookkeeper found it disagreed by $600, the credit side being...

When preparing a trail balance, the bookkeeper found it disagreed by $600, the credit side being much bigger than the debit side. The difference was entered in a suspense account. The following errors were subsequently found:

1. A cheque for $32 for electricity was entered in the cash book but not posted to ledger.
2. The debit side of the wages account is overcast by $28.
3. There is a debit in the rent account of $198 but should be $918.
4. The purchase of an office machine for $3,000 has been posted to the debit side of the purchase account in error.
5. A cheque received from A Li for $80 has been credited to A Lee’s account in error.
6. The sale of some old office machine for $100 has been credited to sales account in error.
7. An amount of $17 paid for postage had been entered in the carriage outwards account in error.
8. Bank charges of $41 shown on the bank statement have not been entered in the books.
9. A credit sales to J Kong for $120 was entered in the sales day book and J Kong’s account as $12.
10. Discount received of $124 received from a creditor has correctly entered in the cash book and purchases ledger but omitted in the general ledger.
Required:

Prepare the journal entries necessary to correct the above errors and show the suspense account. Narratives not required.

Homework Answers

Answer #1

(1.)

Dr. Electricity expense account $32

Cr. Suspense account $32

(2.)

Dr. Suspense account $28

Cr. Wages account $28

(3.)

Dr. Rent account $720

Cr. Suspense account $720

(4.)

Dr. Machinery account $3000

Cr. Purchases account $3000

(5.)

Dr. A Lee account $80

Cr. A li Account $80

(6.)

Dr. Sale account $100

Cr. Old machine $100

(7.)

Dr. Postage account $17

Cr. Carriage Outward account $17

(8.)

Dr. Bank charges account $41

Cr. Bank account $41

(9.)

Dr. J Kong account $108

Cr. Sales account $108

(10.)

Dr. Suspense account $124

Cr. Discount Received account $124

Suspense account

Particular amount Particular amount
To Discount Received account $124 By Rent account $720
To Wages account $28 By Electricity expense account $32
To Balance c/d $600
$752 $752
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
George had completed his company financial statements for the year ended 31st March, which showed a...
George had completed his company financial statements for the year ended 31st March, which showed a profit of £81,208, when he realised that no bank reconciliation statement had been prepared at that date. When checking the cash book against the bank statement and carrying out other checks, he found the following: 1. A cheque for £1,000 had been entered in the cash book but had not yet been presented at the bank. 2. Cheques from customers totalling £2,890 entered in...
On 31st December, 2016 the cash book of Alavanyo Ltd. showed a debit balance of     GHS85,000...
On 31st December, 2016 the cash book of Alavanyo Ltd. showed a debit balance of     GHS85,000 and was in disagreement with the bank statement balance. The Accountant of     Alavanyo Ltd. suddenly resigned his position after identifying the following causes of the discrepancy. i. Cheques issued for GHS60,000 were not presented at the bank by 31st December, 2016. ii. Cheques for GHS80,000 were deposited in the bank but were not cleared. iii. The proceeds of a Bill Receivable of GHS200,000 collected...
The bookkeeper for Nevado Company has prepared the following trial balance: Nevado Company Trial Balance June...
The bookkeeper for Nevado Company has prepared the following trial balance: Nevado Company Trial Balance June 30, 20-- Account Name Debit Credit Cash 2,180 Accounts Receivable 9,700 Supplies 520 Prepaid Insurance 570 Equipment 8,700 Accounts Payable 2,350 M. Nevado, Capital 10,900 M. Nevado, Drawing 4,300 Professional Fees 15,300 Rent Expense 440 Miscellaneous Expense 1,570 25,800 30,730 The bookkeeper has asked for your help. In examining the company's journal and ledger, you discover the following errors. Use this information to construct...
1. Calculate Cost of sales R Inventory (1 July 20.7)............................... 150 000 Cash purchases Credit purchases……………...
1. Calculate Cost of sales R Inventory (1 July 20.7)............................... 150 000 Cash purchases Credit purchases…………… Purchases returns……… 15 000 6 000 2 000 Freight inwards………………………… Freight outwards………………………… Settlement discount received….. Settlement discount granted……… 1 200 1 800 1 700 2 500 Inventory (31 July 20.8)……………………. 120 000 Additional information: The owner of Snow Plumbing Services donated taps and basins to the value of R1 000 to the local crèche on 16 June 20.7. No entries regarding this transaction was...
Y. Young is an inexperienced bookkeeper working for Camden Stores, a Trial Balance was drawn up,...
Y. Young is an inexperienced bookkeeper working for Camden Stores, a Trial Balance was drawn up, but it does not balance. On investigation, it was found that adjustments had not been taken into account. Ignore VAT. Trial Balance for year ended 30 April 2020 Debit Credit Statement of Financial Position Section Capital 536 200 Drawings 48 000 Fixed Deposit 50 000 Land and Buildings 600 000 Equipment 36 000 Vehicles 180 000 Loan 360 000 Creditors Control 8 000 Trading...
WileyPLUS Problem 7-6 Whispering Winds Spa shows a general ledger balance for the Cash account of...
WileyPLUS Problem 7-6 Whispering Winds Spa shows a general ledger balance for the Cash account of $4,169.35 on June 30 and the bank statement as of that date indicates a balance of $4,195.00. When the statement was compared with the cash records, the following facts were determined: 1. There were bank service charges for June of $23.00. 2. A bank memo stated that Bao Dai’s note for $906.00 and interest of $51.00 had been collected on June 29, and the...
Cabbage White Ltd. has the following trial balance at 31 December 2018. Debit €’000 Credit €‘000...
Cabbage White Ltd. has the following trial balance at 31 December 2018. Debit €’000 Credit €‘000 Inventory at 1 January 2018 2,500 Administrative expenses 2,906 Interest expense 65 Distribution costs 585 Non-current assets at cost: Land 800 Buildings 10,000 Plant and equipment 1,400 Motor vehicles 320 Accumulated depreciation at 1 January 2018 Buildings 4,000 Plant and equipment 480 Motor vehicles 120 Suspense* 1,800 Retained profits at 1 January 2018 480 Trade receivables 886 Purchases 4,100 Carriage inwards 100 Carriage outwards...
On October 31, 2021, Oriole Company had a cash balance per books of $8,967. The bank...
On October 31, 2021, Oriole Company had a cash balance per books of $8,967. The bank statement on that date showed a balance of $10,165. A comparison of the statement with the Cash account revealed the following: 1. The statement included debit memos of $45 for the printing of additional company cheques and $40 for bank service charges. 2. Cash sales of $528 on October 12 were deposited in the bank. The journal entry to record the cash receipt and...
On October 31, 2021, Oriole Company had a cash balance per books of $8,967. The bank...
On October 31, 2021, Oriole Company had a cash balance per books of $8,967. The bank statement on that date showed a balance of $10,165. A comparison of the statement with the Cash account revealed the following: 1. The statement included debit memos of $45 for the printing of additional company cheques and $40 for bank service charges. 2. Cash sales of $528 on October 12 were deposited in the bank. The journal entry to record the cash receipt and...
The following information is available to reconcile Branch Company’s book balance of cash with its bank...
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017. On July 31, the company’s Cash account has a $27,497 debit balance, but its July bank statement shows a $27,233 cash balance. Check No. 3031 for $1,482 and Check No. 3040 for $558 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT