Append below the answer for Accounting Test Question COE No.2 on Correction Of Errors/Suspense Account:
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ANSWER To Accounting Question No. COE 2 On Correction of Errors
(a) Journal entries to correct errors ( without narrations)
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Debit($)
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Credit($)
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1
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Discount Received
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76
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Discount Allowed
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76
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Suspense
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152
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2
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Suspense
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36
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Sales
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36
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3
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Suspense
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6
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Mr. B
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6
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4
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Machinery
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1,200
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Stock
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1,200
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5
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Mr. C
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265
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Suspense
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265
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6
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Petty Cash
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100
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Suspense
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100
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7
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Bank Interest Charges
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720
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Suspense
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720
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(b) Suspense Account
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Debit($)
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Credit($)
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30/9/08
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30/9/08
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Difference as per Trial Balance
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1,195
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Discount Received
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76
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Mr. B
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6
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Discount Allowed
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76
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Sales
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36
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Mr. C
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265
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Bank Interest Charges
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100
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720
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1,237
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1,237
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(c) Statement of the Correction on Working Capital
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($)
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($)
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Working Capital as per Original Trial Balance (given)
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16,217
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Add: Mr. C
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265
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Petty Cash
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100
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365
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16,582
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Less: Mr. B
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6
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Stock
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1,200
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(1,206)
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Working Capital after adjustments
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15,376
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