Q10-9: SUZZY AND DARYL VENTURES The bookkeeper has prepared a preliminary trial balance of Suzzy and Daryl for the year ended Dec 31, as follows.

Q10-9: SUZZY AND DARYL VENTURES The bookkeeper has prepared a preliminary trial balance of Suzzy and Daryl for the year ended Dec 31, as follows. Capital account 110,000 Profit and loss account at 1 January 50,000 Bank loan 30,458 Debtors and creditors 77,240 60,260 Cash in hand and bank overdraft 1,000 5,036 Stocks and work in progress at 1 January 108,000 Fixed assets at cost and depreciation provision at 31 December 161,879 60,943 Depreciation for the year 15,000 Purchased and sales 300,297 400,000 Returns 4,370 4,630 Discounts allowed and received 9,760 6,740 Wages and salaries (net) 12,146 Payments of PAYE income tax 5.988 Payments of National Insurance 4,766 Creditors for PAYE at 1 January 900 Proceeds of sale of fixed assets 2,000 Rent, rates and insurance 18,036 Postage, telephone and stationery 3,009 Repairs and maintenance 2,124 Advertising 4,876 Packaging materials 924 Motor expenses 2,000 Sundry expenses 1.000 Loan interest 4,000 Accrued expenses 6,478 Suspense account 1.030 737.445 737.445 When the bookkeeper discovered that the preliminary trial balance did not balance he made it do so by opening a suspense account and entering the amount on the appropriate side. A subsequent investigation shows the following mistakes have been made. (1) A loan to the business of GH10,000 from the owner's brother, Amfic, has been added to capital. (2) Accrued interest on the bank loan of GH458 has been credited to the bank loan account instead of being treated as a current liability. (3) Bank charges of GH1,000 have been completely omitted from the books. Fixed assets with an original cost of GH11,879 and accumulated depreciation of GH10,943 have been sold for GH2,000. This amount is shown as a separate item in the trial balance, and no entry has been made in the assets or provision for depreciation accounts. Any surplus or deficit on sale should be shown in a separate account. (5) Deduction of GH6,088 for PAYE income tax and GH1,766 for National Insurance, graduated pensions, etc, were made from employees' wages and salaries during the year. The company's contribution for National Insurance amounted to GH3,000. No entries have been made for these items. (6) In addition to allowing discount of GH 240 and receiving discount of GH260, various debtors' and creditors' accounts amounting to GH10,000 were set off by contra. No entries have been made in respect of these items. Debtors amounting to GH2,000 are bad and need to be written off. (8) A debt of GH1,000 written off as bad in a previous year has been recovered in full. The amount has been credited to the debtors' account and deducted from the total of the other debtors. (9) Goods returned from a debtor of GH630 have been correctly entered into the debtor's account but by mistake were entered in the returns outwards journal. (10) A payment for stationery of GH234 was correctly entered in the cash book but debited in the ledger as GH&243. (11) A payment of GH76 for packing materials has been correctly entered in the cash book, but no other entry has been made. (12) A payment of GH124 for advertising has been debited to repairs and maintenance. (13) A cheque payment of GHe 26 for insurance has been recorded in all accounts as GH62. (14) A page in the purchase account correctly totalled GH125,124 was carried forward to the top of the next page as GHe 125,421. All entries other than those given above are to be assumed to have been made correctly. Requirements 1. Prepare journals and ledgers (posting)