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The following information is relevant for Questions 18.1 and 18.2.

The following information is relevant for Questions 18.1 and 18.2.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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34 20 The following information is relevant for Questions 18.1 and 18.2. totals were: $864,390 $860,930 DEBIT CREDIT The company does not have control accounts for its receivables and payables ledgers. The following errors were found: 000 00 In recording an issue of shares at par, cash received of $333.000 was credited to the ordinary share capital account as $330,000. Cash $2,800 paid for plant repairs was correctly accounted for in the cash book but was credited to the plant asset account. The petty cash book balance $500 had been omitted from the trial balance. A cheque for $78,400 paid for the purchase of a motor car was debited to the motor vehicles account as $87,400. A contra between the receivables ledger and the payables ledger for $1,200 which should have been credited in the receivables ledger and debited in the payables ledger was actually debited in the receivables ledger and credited in the payables ledger. When trial to a was for The trial balance
Transcribed Image Text:34 20 The following information is relevant for Questions 18.1 and 18.2. totals were: $864,390 $860,930 DEBIT CREDIT The company does not have control accounts for its receivables and payables ledgers. The following errors were found: 000 00 In recording an issue of shares at par, cash received of $333.000 was credited to the ordinary share capital account as $330,000. Cash $2,800 paid for plant repairs was correctly accounted for in the cash book but was credited to the plant asset account. The petty cash book balance $500 had been omitted from the trial balance. A cheque for $78,400 paid for the purchase of a motor car was debited to the motor vehicles account as $87,400. A contra between the receivables ledger and the payables ledger for $1,200 which should have been credited in the receivables ledger and debited in the payables ledger was actually debited in the receivables ledger and credited in the payables ledger. When trial to a was for The trial balance
18.2 What will the balance on the suspense account be after making the necessary entries to correct the errors affecting the suspense account? $2,440 DEBIT $15,560 CREDIT $13,640 DEBIT $3.440 DEBIT C
Transcribed Image Text:18.2 What will the balance on the suspense account be after making the necessary entries to correct the errors affecting the suspense account? $2,440 DEBIT $15,560 CREDIT $13,640 DEBIT $3.440 DEBIT C
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