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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Correction of Errors
Grace’s
- $2 500 received from sales of old motor vehicle had been entered in the Sales Account.
- Purchases day book had been overcast by $200.
- A cheque of $1 900 from A. Brent was accidentally credited to A. Brian’s account.
- The owner took $2 800 worth of goods out of the business purchases.
- Bank charges $440 entered in the
cash book have not been posted to the bank charges account.
- 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.
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