The bookkeeper of a firm, having been unable to agree the Trial Balance raised a Suspense Account in
which he entered the amount by which he was out of balance. The following errors were discovered:
1. Goods bought from a supplier amounting to 77 had been noted to the credit of his account as
770.
2. A dishonoured bill of exchange receivable for '1,600 returned by the firm's bank had been
credited to the bank Account and debited to the Bills Receivable Account. A cheque was
received later from the customer for 1.600 and duly paid.
3. An item of 80 entered in the Sales Return Book had been posted to the debit of the customer
who returned the goods.
4. An amount of 800, owed by a customer had been duly entered in his account but not posted
to the Debtor's Account.
Show the Suspense Account as raised by the bookkeeper with the adjusting entries you would
find necessary to make.
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