Question
The bookkeeper for Molly Dearlings business opened a suspense account when the trial balance failed to agree as at 31 December. The following three errors
The bookkeeper for Molly Dearlings business opened a suspense account when the trial balance failed to agree as at 31 December. The following three errors were subsequently discovered (correction of which cleared the balance on the suspense account to zero):
i. A payment of wages 1,739 had been correctly recorded in the cash book but had been debited to the wages account as 1,793.
ii. On 12th December, a direct debit payment of 89 to EFF had left the business bank account. The bookkeeper didnt know what it was, so he had debited suspense and then forgot about it. It is now discovered that it was the first monthly subscription payment to a gym (Elite Fitness Factory) that Molly had recently joined.
iii. Rent received of 134 had been correctly recorded in the cash book but no other entry had been made.
What must the original balance on the suspense account have been, before the three errors were corrected?
(Make sure you also state whether this original balance was Dr or Cr.)
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