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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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb6ecd28a-355e-4831-b94a-c7070a834c8a%2F902d6b25-f050-4127-8c6b-10d3d686bd2f%2Fgwg8uoe_processed.png&w=3840&q=75)
Transcribed Image Text: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.
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