Answered step by step
Verified Expert Solution
Question
1 Approved Answer
B) The trial balance of Paa Kwasi Enterprise has an excess of credit over debit of GHS 50,000. Suspense account has been opened to balance
B) The trial balance of Paa Kwasi Enterprise has an excess of credit over debit of GHS 50,000. Suspense account has been opened to balance the accounts. The following transactions were later discovered: i) Discount allowed of GHS 20,000 and Discount received of GHS 32,000 have both been entered on the wrong side of the trial balance. ii) The receivable control account balance of GHS 897,548 had been included in the trial balance as GHS 969,548 iii) Sales of GHS 8,000 had been omitted from the sales records (i.e from the sales account). iv) Purchase of raw material of GHS 16,020 was entered in the purchase account as GHS 18,000. v) The debit balance of GHS 11,980 on the current account with the Proprietor's wife had been omitted from the trial balance. Required: a) Make journal entries to correct the errors (5 marks) b) Prepare the suspense account. (3 marks) (Total 20 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started