Solution-Write up suspense account showing the correction

Write up suspense account showing the correction of error

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Reference no: EM132629143

You have a Trial Balance and have drawn up accounts for the year ended 31 December. There was a shortage of RM292 on the credit side of the Trial Balance, a suspense account being opened for the amount.

The following errors were located:

(i) RM55 received from the sale of an old office equipment has been entered in the Sales account.

(ii) Purchases Day Book had been overcast by RM60.

(iii) A private purchase of RM115 had been included in the business Purchases account.

(iv) Bank charges RM38 entered in the Cash Book have not been posted to the Bank Charges account.

(v) A sale of goods to Charles RM690 was correctly entered in the Sales Day Book but entered in the personal account as RM960.

Required:

Problem (a) Show the requisite journal entries to correct the errors (include narratives).

Problem (b) Write up the Suspense account showing the correction of the errors.

Problem (c) The net profit originally calculated was RM11,370. Show your calculation of the correct figure.

Reference no: EM132629143

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Write up suspense account showing the correction of error

Reference no: EM132629143

Reference no: EM132629143

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