The trial balance of a sole trader failed to agree and the balance was entered into a
Fantastic news! We've Found the answer you've been seeking!
Question:
The trial balance of a sole trader failed to agree and the balance was entered into a suspense account. An examination
of the books and records of the sole trader revealed the following:
During the year, /2,250 interest received on favourable bank balances were correctly entered in the cash
book but debited to the interest expense account.
A payment of /7,100 for rent had been correctly recorded in the cash book but debited to the rent account
as /17,000.
When these entries are corrected the trial balance will balance.
You are required to:
i. Prepare journal entries to correct the above errors. Narratives are not required.
ii. Hence derive the opening balance in the suspense account.
Posted Date: