Errors and Suspense Account

Determine the type of error committed with each of the following transactions: (4 marks)

Transaction	Error
Purchase of machinery was left out from the books
Cash was credited and sales were debited for a cash sales
Sale of old machinery was entered in the sales account
A payment of $340 from C. Bob entered as $300 in both C. Bob and cash accounts

R&R Enterprise balanced all the ledgers at the end of the year 2014 and extracted a trial balance. The total debits were lower that total credits by $156. On April 15, 2015, the following errors made in 2014 were discovered:

Purchases day book was overstated by $20

A payment of $260 from a debtor was correctly entered in the debtors account, but left out of the cash account.

Purchase of fixture $285 was entered in the purchases account.

Sales to W. Grell of $750 was properly recorded in the W. Grells account but entered in Sales account as $570.

The bank account was credited with $96 for telephone expense but no entry has been made to the telephone expense account.

Required: Prepare a Suspense Account showing all the necessary corrections. (10mks)