Answer To Accounting Test Question COE No.2 On Correction Of Errors/Suspense Account

September 22nd, 2008 Comments off
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Append below the answer for Accounting Test Question COE No.2 on Correction Of Errors/Suspense Account:

ANSWER To Accounting Question No. COE 2 On Correction of Errors

(a) Journal entries to correct errors ( without narrations)

 

 

Debit($)

Credit($)

1

Discount Received

76

 

 

Discount Allowed

76

 

 

Suspense

 

152

 

 

 

 

2

Suspense

36

 

 

Sales

 

36

 

 

 

 

3

Suspense

6

 

 

Mr. B

 

6

 

 

 

 

4

Machinery

1,200

 

 

Stock

 

1,200

 

 

 

 

5

Mr. C

265

 

 

Suspense

 

265

 

 

 

 

6

Petty Cash

100

 

 

Suspense

 

100

 

 

 

 

7

Bank Interest Charges

720

 

 

Suspense

 

720

(b) Suspense Account

 

Debit($)

 

Credit($)

30/9/08

 

30/9/08

 

Difference as per Trial Balance

1,195

Discount Received

76

Mr. B

6

Discount Allowed

76

Sales

36

Mr. C

265

 

 

Bank Interest Charges

100

 

 

 

720

 

1,237

 

1,237

(c) Statement of the Correction on Working Capital

 

($)

($)

Working Capital as per Original Trial Balance (given)

 

16,217

Add: Mr. C

265

 

Petty Cash

100

365

 

 

16,582

Less: Mr. B

6

 

Stock

1,200

(1,206)

Working Capital after adjustments

 

15,376

 

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