Grace’s trial balance did not balance, the debits exceeded the credits by $1 560. A suspense account was opened for the difference.  You are asked to help and after inspection of the ledgers the following errors were found.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Correction of Errors

Grace’s trial balance did not balance, the debits exceeded the credits by $1 560. A suspense account was opened for the difference.  You are asked to help and after inspection of the ledgers the following errors were found. 

 

  1. $2 500 received from sales of old motor vehicle had been entered in the Sales Account.

 

  1. Purchases day book had been overcast by $200.

 

  1. A cheque of $1 900 from A. Brent was accidentally credited to A. Brian’s account.

 

  1. The owner took $2 800 worth of goods out of the business purchases.

 

  1. Bank charges $440 entered in the cash book have not been posted to the bank charges account.

 

  1. A sale of goods to R Christie $4 600 was correctly entered in the Cash Book but entered in the personal account ad $6 400.

 

Write up the suspense account to clear the difference. 

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

Show the requisite journal entries to correct the balance. 

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Accounting Changes and Error Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education