Question
The trial balance of PaaKwasi Enterprise has an excess of credit over debit of GHS 50,000. Suspense account has been opened to balance the accounts.
The trial balance of PaaKwasi Enterprise has an excess of credit over debit of GHS 50,000. Suspense account has been opened to balance the accounts. The following transactions were later discovered:
i) Discount allowed of GHS 20,000 and Discount received of GHS 32,000 have both been entered on the wrong side of the trial balance.
ii) The receivable control account balance of GHS 897,548 had been included in the trial balance as GHS 969,548
iii)Sales of GHS 8,000 had been omitted from the sales records (i.e from the sales account).
iv) Purchase of raw material of GHS 16,020 was entered in the purchase account as GHS18,000.
v) The debit balance of GHS 11,980 on the current account with the Proprietors wife had been omitted from the trial balance.
Required:
a) Make journal entries to correct the errors
b) Prepare the suspense account.
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