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When the trial balance of Alhaji Ola was extracted, it was discovered that the debit side exceeded the credit side by Le199,000 and a suspense
When the trial balance of Alhaji Ola was extracted, it was discovered that the debit side exceeded the credit side by Le199,000 and a suspense account was opened. It was later found out that the discrepancy was due to the following: (a) Returns outwards account was overcast by Le40,000. (b) (c) (d) A sale of old fixtures (worth Le45,000 book value) for Le45,000 on credit to Thelma Johnson was mistakenly entered in the sales journal at that figure but posted as Le54,000 to Johnson's account in the ledger. A sale of goods Le120,000 to P. Philips had been entered in the sales book but not posted to the customer account in the ledger. A total of discount received Le175,000 in the cash book was posted to the debit side of discount allowed in the ledger. You are required to: (a) Correct these errors through the medium of journal (no narration). (b) Write up the suspense account
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