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
|
|