Question

1)
Kenneth extracted a trial balance showing an excess of $56 in the debit column. This difference has
been transferred to a suspense account. The following errors had been made:
(1) Purchase of goods from Vaibhav for $120 had been credited to the account of Haritha.
(2) Sale of goods to Nakshatra for $27 had been credited to her account
(3) Sale of plant for $190 had been credit to sales
(4) Sale of goods to Dane entered in day book as $120, but debited to his account as $12.
(5) Sales day book undercast by 200
(6) A balance for rent payable accrued as 530 in previous period has not been brought forward in
the current period
(7) Petty cash balance. $12. omitted from the trial balance
The company does not maintain control accounts in respect of its receivables and payables ledgers.
Required
(a) Prepare the journal entries necessary to correct errors (2) to (7) above
(7 marka
(b) Write up and clear the suspense account
(3 maria)
(20 mard)

Answer 1

Answer:

Sale of goods to Dane entered in day book as $120, but debited to his account as $12.