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On extracting a trial balance, the accountant of ETT discovered a suspense account with a debit balance of $1,075 included therein; she also found that

On extracting a trial balance, the accountant of ETT discovered a suspense account with a debit balance of $1,075 included therein; she also found that the debits exceeded the credits by $957. She posted this difference to the suspense account and then investigated the situation. She discovered:

  • A debit balance of $75 on the postage account had been incorrectly extracted on the list of balances as $750 debit.
  • A payment of $500 to a credit supplier, X, had been correctly entered in the cash book, but no entry had been made in the supplier account.
  • When a motor vehicle had been purchased during the year the bookkeeper did not know what to do with the debit entry so he made the entry Dr Suspense, Cr Bank $1,575.
  • A credit balance of $81 in the sundry income account had been incorrectly extracted on the list of balances as a debit balance.
  • A receipt of $5 from a credit customer, Y, had been correctly posted to his account but had been entered in the cash book as $625.
  • The bookkeeper was not able to deal with the receipt of $500 from the owner own bank account, and he made the entry Dr Bank and Cr Suspense.
  • No entry has been made for a cheque of $120 received from a credit customer M.
  • A receipt of $50 from a credit customer, N, had been entered into his account as $5 and into the cash book as $5.

What journals are required to correct the errors and eliminate the suspense account?

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