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8 Mawunyo Ltd had its total debits exceeding the total credits in the trial balance as at 31st December 2021 by GHC6,500. The following were
8 Mawunyo Ltd had its total debits exceeding the total credits in the trial balance as at 31st December 2021 by GHC6,500. The following were revealed during investigations: (a) Sales had been overcast by GHC5,000 (b) Sales Returns had been understated by GHC1,000 (c) Purchase Account had been overstated by GHC2,500 (d) Returns Outwards of GHC6,132 to Elikplim has been wrongly debited to Elikem's account. (e) A payment by a debtor of GHC10,000 by a direct bank transfer had not been entered in the debtor's account. (f) Salary of GHC2,000 had been recorded in Sundry Expenses Account Required: (a) Show the necessary journal entries to correct the above errors (b) Prepare the Suspense account, duly balanced as it would appear after the correction of the above errors
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