Asia runs a trading business. She prepared a trial balance on 31 August 2023. The credit total was $273 higher than the debit total, so Asia put the difference into a suspense account.
Asia later found the following errors.
1 A credit purchase of $112 from Jacques had been entered twice in the purchases journal.
2 The wages account had been overcast by $300.
3 Cash received of $75 from Savanah, a trade receivable, had been entered only in the cash book.
4 The total of the sales returns journal for August 2023, $198, had been credited to both the sales returns account and the purchases returns account.
5 A payment to Sophie of $93 had been entered as $39 in Sophie’s account.
(a)[11]
Write the journal entries needed to correct errors 1-5. Narratives are not needed.
(b)[5]
Prepare the suspense account and include the original difference from the trial balance.
(c)[4]
Complete the table below by inserting a tick (✓) to show the effect of each error. The first row has already been done as an example.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.