You have extracted a trial balance and drawn up accounts for the year ended 31 December
20X6. There was a shortage of £292 on the credit side of the trial balance, a suspense account
being opened for that amount.
During 20X7 the following errors made in 20X6 were located:
(i) £55 received from sales of old office equipment has been entered in the sales account.
(i/) Purchases day book had been overcast by £60.
(iii) A private purchase of £115 had been included in the business purchases.
(iv) Bank charges £38 entered in the cash book have not been posted to the bank charges
account.
(v) Avsale of goods to B Cross £690 was correctly entered in the sales book but entered in the personal
account as £960.
Required:
(a) Show the requisite journal entries to correct the errors.
(6) Write up the suspense account showing the correction of the errors.
(c) The net profit originally calculated for 20X6 was £11,370. Show your calculation of the correct
figure.