A trial balance failed to agree because the credit side exceeds the debit side by $2,347. A suspense account has been opened into which the difference is entered. Subsequently the following errors were identified: The credit side of the bank account has been overcast by $1,200. A sales invoice for $2,000 had been posted on the wrong side of the receivables account. Office equipment was traded in for some new equipment. The trade-in value of $300 has been correctly entered in the Equipment-cost a/c but t other side of the entry was omitted. Rent received of $100 has been debited in the cash book but also debited in error to the rental income account. Car repairs of $74 shown in the cash book had been debited to the motor expenses account as $47. A cheque payment of computer repairs for $1,020 has been entered as $102 on both accounts. The purchases account contains a balance of $1,800 but this has been entered in the trial balance as $180. Required: Prepare the journal entries needed to correct the above errors and show the entries in the suspense account
A trial balance failed to agree because the credit side exceeds the debit side by $2,347. A suspense account has been opened into which the difference is entered. Subsequently the following errors were identified: The credit side of the bank account has been overcast by $1,200. A sales invoice for $2,000 had been posted on the wrong side of the receivables account. Office equipment was traded in for some new equipment. The trade-in value of $300 has been correctly entered in the Equipment-cost a/c but t other side of the entry was omitted. Rent received of $100 has been debited in the cash book but also debited in error to the rental income account. Car repairs of $74 shown in the cash book had been debited to the motor expenses account as $47. A cheque payment of computer repairs for $1,020 has been entered as $102 on both accounts. The purchases account contains a balance of $1,800 but this has been entered in the trial balance as $180. Required: Prepare the journal entries needed to correct the above errors and show the entries in the suspense account
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PLEASE DO NOT GIVE SOLUTION IN IMAGE FORMAT
Transcribed Image Text:1.
The credit side of the bank account has been overcast by $1,200.
A sales invoice for $2,000 had been posted on the wrong side of the receivables account.
Office equipment was traded in for some new equipment. The trade-in value of $300 has been correctly entered in the Equipment -cost a/c but the
other side of the entry was omitted.
Rent received of $100 has been debited in the cash book but also debited in error to the rental income account.
Car repairs of $74 shown in the cash book had been debited to the motor expenses account as $47.
6.
A cheque payment of computer repairs for $1,020 has been entered as $102 on both accounts.
The purchases account contains a balance of $1,800 but this has been entered in the trial balance as $180.
2.
3.
4.
5.
A trial balance failed to agree because the credit side exceeds the debit side by $2,347. A suspense account has been opened into which the
difference is entered. Subsequently the following errors were identified:
7.
Required:
Prepare the journal entries needed to correct the above errors and show the entries in the suspense account.
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