The trial balance prepared as at 31 of December 20xx of Samitha's business did not tally. The difference of the trial balance of Rs. 5 500 was credited to the suspense account. On subsequent examination, the following errors were found. 01. Total of the telephone charges account is understated by Rs. 5 000. 02. Payment of building repair expense of Rs. 30 000 has been correctly credited to the cash account, but it has been debited to building account in error. 03. A cheque issued for purchases of Rs. 45 000 of trade stocks has been correctly recorded in the bank account, but it has been debited to the purchases account as Rs. 54 000. 04.The balance of the salary account of Rs . 5 000 has been extracted to the trial balance as Rs. 500. 05. The total of the sales account has been understated by Rs. 6 000. Required :- 1. Write the journal entries for the correction of the above errors. 2. Write-up the suspense account.

The trial balance prepared as at 31 of December 20xx of Samitha's business did not tally. The difference of the trial balance of Rs. 5 500 was credited to the suspense account. On subsequent examination, the following errors were found. 01. Total of the telephone charges account is understated by Rs. 5 000. 02. Payment of building repair expense of Rs. 30 000 has been correctly credited to the cash account, but it has been debited to building account in error. 03. A cheque issued for purchases of Rs. 45 000 of trade stocks has been correctly recorded in the bank account, but it has been debited to the purchases account as Rs. 54 000. 04.The balance of the salary account of Rs . 5 000 has been extracted to the trial balance as Rs. 500. 05. The total of the sales account has been understated by Rs. 6 000. Required :- 1. Write the journal entries for the correction of the above errors. 2. Write-up the suspense account.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter2: Analyzing Transactions

Section: Chapter Questions

Problem 5PB: Tech Support Services has the following unadjusted trial balance as of January 31, 2019: The debit...

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Fred's trial balance did not balance so he opened a suspense account with a debit balance of $346. Control accounts are maintained for receivables and payables. Fred discovered the following: 1 The sales day book was undercast by $400. Purchases of $520 from the purchases day book have only been recorded in the payables ledger control account. 2 3 Profit on sale of non-current assets of $670 had been recorded in the sundry income account as $760. What is the remaining balance on Fred's suspense account after these errors have been corrected?|
A suspense account was opened when a trial balance failed to agree. The following errors were later discovered.  A gas bill of $420 had been recorded in the gas account as $240.  A discount of $50 given to a customer had been credited to discounts received.  Interest received of $70 had been entered in the bank account only. What was the original balance on the suspense account?
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The trial balance of The White Ribbon failed to agree, and the difference was posted to a suspense account. The Income Statement then showed a net loss $15,800. A subsequent audit revealed the following accounting errorsa) The loan interest of $25,000 was paid by cheque and correctly posted in the cashbook, but was debited to the loan accountb) An invoice for credit sales of $70,000 was posted in the sales ledger but was not posted in the sales accountc) Office expense of $30,000 paid by cheque and correctly posted in the cashbook, was debited to the Insurance accountd) The Closing Stock valued at $60,500 was taken as $44,500e) Cash donations of $22,500 was posted to the books as $55,200f) The Opening Stock valued at $35,000 was taken as $55,000g) Building repairs paid for $40,000 by cheque was correctly recorded in the cashbook but was debited to the building accountRequired1. Write up the General Journal to note the corrections required for the above…
The trial balance of The White Ribbon failed to agree, and the difference was posted to a suspense account. The Income Statement then showed a net loss $15,800. A subsequent audit revealed the following accounting errors a) The loan interest of $25,000 was paid by cheque and correctly posted in the cashbook, but was debited to the loan account b) An invoice for credit sales of $70,000 was posted in the sales ledger but was not posted in the sales account c) Office expense of $30,000 paid by cheque and correctly posted in the cashbook, was debited to the Insurance account d) The Closing Stock valued at $60,500 was taken as $44,500 e) Cash donations of $22,500 was posted to the books as $55,200 f) The Opening Stock valued at $35,000 was taken as $55,000 g) Building repairs paid for $40,000 by cheque was correctly recorded in the cashbook but was debited to the building account Required REQUIRED 2. Prepare the Statement of Adjusted Net Income and identify and briefly explain the errors…
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After Bunker Hill Assay Services Inc. had completed all postings for March in the current year (20Y4), the sum of the balances in the following accounts payable ledger did not agree with the 36,600 balance of the controlling account in the general ledger: Assuming that the controlling account balance of 36,600 has been verified as correct, (a) determine the error(s) in the preceding accounts and (b) prepare a listing of accounts payable creditor balances (from the corrected accounts payable subsidiary ledger).
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Prior to recording the following, Elite Electronics, Inc., had a credit balance of $2,000 in its Allowance for Doubtful Accounts.Required:Prepare journal entries for each transaction.a. On August 31, a customer balance for $300 from a prior year was determined to be uncollectible and was written off.b. On December 15, the customer balance for $300 written off on August 31 was collected in full.
5. The difference in Trial Balance is kept in Suspense Account. Before preparing the Final Accounts, the following errors were detected: Purchase for $ 540 was written in Sales Day Book, but was posted to the correct side of Party's Account Salary Account Total $12,600 in one page, was carried over to the next page, as $1,260, on the side Interest on overdraft $650 was not posted to ledger from Cash Book. $600 collected from a Party, in respect of the old dues from him, which were written off as Bad Debt Two years ago, was credited to the Party's Account. Show Rectification Entries and Suspense Account State, to what extent the Profit and Loss Account would have been affected, if the above errors would not have been detected and corrected and also the Profit and Loss Account, before rectification.
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The Colby Group has the following unadjusted trial balance as of August 31, 2019: The Colby Group Unadjusted Trial Balance August 31, 2019 Credit Balances Debit Balances Cash 17,300 37,000 7,400 Accounts Receivable Supplies Prepaid Insurance Equipment.. Notes Payable.. Accounts Payable Terry Colby, Capital.. Terry Colby, Drawing 1,900 196,000 97,600 26,000 129,150 56,000 Fees Earned.. 454,450 Wages Expense Rent Expense Advertising Expense.. Miscellaneous Expense 270,000 51,800 25,200 5,100 667,700 707,200