The trial balance of Jacksons Pet shop as at 30 April 2021 was balanced with the inclusion of the following debit balance: Debit balance to the suspense account $9,000. Subsequent investigations revealed the following errors: 1) Discounts received of $750 have been posted to the debit of the discounts allowed account. 2) Wages of $7,200 paid in February 2021 by cheque have been posted to the wages account only. 3) Goods that were purchased on credit from L. Banks $3,750 was recorded in the purchases account as $750. 4) Sales on credit to a customer, J Riley $9,600 was omitted from the customer's account. 5) A payment of $2,550 to D Whyte in January 2021 has been posted to the customers account as a credit. 6) A payment to a supplier, A Black $143 by cheque was recorded in both accounts as $413. REQUIRED: a) Prepare the journal entries to correct the above errors b) Prepare the suspense account as it would appear after all the errors have been corrected.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The trial balance of Jacksons Pet shop as at 30 April 2021 was balanced with the inclusion of the following
debit balance: Debit balance to the suspense account $9,000. Subsequent investigations revealed the
following errors: 1) Discounts received of $750 have been posted to the debit of the discounts allowed
account. 2) Wages of $7,200 paid in February 2021 by cheque have been posted to the wages account
only. 3) Goods that were purchased on credit from L. Banks $3,750 was recorded in the purchases account
as $750. 4) Sales on credit to a customer, J Riley $9,600 was omitted from the customer's account. 5) A
payment of $2,550 to D Whyte in January 2021 has been posted to the customers account as a credit. 6) A
payment to a supplier, A Black $143 by cheque was recorded in both accounts as $413. REQUIRED: a)
Prepare the journal entries to correct the above errors b) Prepare the suspense account as it would appear
after all the errors have been corrected.
Transcribed Image Text:The trial balance of Jacksons Pet shop as at 30 April 2021 was balanced with the inclusion of the following debit balance: Debit balance to the suspense account $9,000. Subsequent investigations revealed the following errors: 1) Discounts received of $750 have been posted to the debit of the discounts allowed account. 2) Wages of $7,200 paid in February 2021 by cheque have been posted to the wages account only. 3) Goods that were purchased on credit from L. Banks $3,750 was recorded in the purchases account as $750. 4) Sales on credit to a customer, J Riley $9,600 was omitted from the customer's account. 5) A payment of $2,550 to D Whyte in January 2021 has been posted to the customers account as a credit. 6) A payment to a supplier, A Black $143 by cheque was recorded in both accounts as $413. REQUIRED: a) Prepare the journal entries to correct the above errors b) Prepare the suspense account as it would appear after all the errors have been corrected.
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