QUESTION 2 Jerry, having been unable to balance his Trial Balance at 31 December 2020, the debit balance has exceeded the credit balance by RM736. Investigation has been carried and errors were identified as follows. (a) A discount of RM265 to a debtor, Mr Tan, was entered in debtor control account as RM256. (b) The total of the discount received column in the cash book for the month of December RM237 had not been posted. (c) RM500, representing the sale proceeds of a machine scrapped, had been passed through the sales revenue account. (d) A balance of RM268, owing by customer, Mr Chan, had been omitted from the trial balance at 31 December. (e) The bank overdraft of RM313 had been entered in the trial balance as RM331. (f) Sale of goods for RM1,000 to Mrs Lim on credit had been completely missed from the books. (g) Discount received balance of RM379 had been entered in the trial balance as RM397 (debit balance). Required (i) State the entries to be made to correct ALL above errors. (ii) Prepare a suspense account to take up the necessary adjustments.
QUESTION 2
Jerry, having been unable to balance his
has exceeded the credit balance by RM736. Investigation has been carried and errors were
identified as follows.
(a) A discount of RM265 to a debtor, Mr Tan, was entered in debtor control account as RM256.
(b) The total of the discount received column in the
RM237 had not been posted.
(c) RM500, representing the sale proceeds of a machine scrapped, had been passed through
the sales revenue account.
(d) A balance of RM268, owing by customer, Mr Chan, had been omitted from the trial balance
at 31 December.
(e) The bank overdraft of RM313 had been entered in the trial balance as RM331.
(f) Sale of goods for RM1,000 to Mrs Lim on credit had been completely missed from the
books.
(g) Discount received balance of RM379 had been entered in the trial balance as RM397 (debit
balance).
Required
(i) State the entries to be made to correct ALL above errors.
(ii) Prepare a suspense account to take up the necessary adjustments.
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