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Mary Redmond's trial balance failed to agree on 31.12.20 and the difference was entered in a suspense account. She prepared draft final accounts, the SOFP
Mary Redmond's trial balance failed to agree on 31.12.20 and the difference was entered in a suspense account. She prepared draft final accounts, the SOFP of which is given below. She wrote the suspense account off to the SOPL. When preparing the trial balance and draft accounts she took the figure for accounts receivable and accounts payable from the control accounts.
On checking the accounting books and records the following errors were discovered.
- A motor van sold on credit for 6,400 was entered in the sales book. The original cost of the van was 12,200 and aggregate depreciation to date of sale amounted to 5,500. Depreciation is provided on vans at 20% on cost.
- A credit note for 43 received from a account payable was entered correctly in the returns book but credited twice in the account payable's account.
- The total on one page of the sales book was carried forward as 17,385 instead of 13,785.
- Repairs carried out to the photocopier amounting to 630 were posted to the equipment account. Depreciation is provided on equipment at 10% on cost.
- An invoice for goods received amounting to 2,315 was entered in the purchases returns book
- The total of discount allowed of 1,416 was posted to the incorrect side of the discount account.
- (vii) The total sales for the period 766,350 were posted to the accounts receivable control account as 776,350.
You are required to:
- Journalise the necessary corrections.
- Show the suspense account.
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