On extracting a trial balance, the accountant of ETT discovered a suspense account with a debit balance of RM1,075 included therein; she also found that the debits exceeded the credits by RM957. She posted this difference to the suspense account and then investigated the situation. She discovered: (1) A debit balance of RM75 on the postage account had been incorrectly extracted on the list of balances as RM750 debit. (2) A payment of RM500 to a credit supplier, X, had been correctly entered in the cash book, but no entry had been made in the supplier’s account.
Question 2
On extracting a
(1) A debit balance of RM75 on the postage account had been incorrectly extracted on the list of balances as RM750 debit.
(2) A payment of RM500 to a credit supplier, X, had been correctly entered in the
(3) When a motor vehicle had been purchased during the year the bookkeeper did not know what to do with the debit entry so he made the entry Dr Suspense, Cr Bank RM1,575.
(4) A credit balance of RM81 in the sundry income account had been incorrectly extracted on the list of balances as a debit balance.
(5) A receipt of RM5 from a credit customer, Y, had been correctly posted to his account but had been entered in the cash book as RM625.
(6) The bookkeeper was not able to deal with the receipt of RM500 from the owner’s own bank account, and he made the entry Dr Bank and Cr Suspense.
(7) No entry has been made for a cheque of RM120 received from a credit customer M.
(8) A receipt of RM50 from a credit customer, N, had been entered into his account as RMM5 and into the cash book as RM5.
What journals are required to correct the errors and eliminate the suspense account?
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