Question
uestion No.06 There was a difference in Trial Balance of Mr. Akram, a trader, on 31.12.2012 and the difference in books was carried to a
uestion No.06 There was a difference in Trial Balance of Mr. Akram, a trader, on 31.12.2012 and the difference in books was carried to a suspense account and the books were closed. Subsequently, ongoing through the books, the following errors were located. Marks (5.5 + 2.5 + 2) (a) Rs. 2,296 paid for repairs to motor car, was debited to Motor Car Account as Rs. 696. (b) A sale of Rs. 1,400 to Kamran in the sales book as Rs. 2,120. (c) A cash discount of Rs. 800 received was entered in the cash book but was not posted in the ledger. (d) Rs. 400 being purchase returns posted to the debit of purchase account. (e) The purchase of machine on 1.04.2012 for Rs. 24,000 was entered in the purchase book. (f) While carrying forward total of one page in Wasim Account, the amount of Rs. 1,000 was written on the credit side instead of the debit side. (g) A cheque of Rs. 6,192 received from Jamil (after allowing a discount of Rs. 92) was endorsed to Global Inc. in full settlement for Rs. 7,000. The Cheque was finally dishonored but no entry is passed in the books. Give journal entries to rectify the above errors and prepare Suspense Account.
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