Question
You have been provided with the companys trial balance as at 31 March 2020. Unfortunately, it was prepared by a junior member of staff and
You have been provided with the companys trial balance as at 31 March 2020. Unfortunately, it was prepared by a junior member of staff and does NOT balance.
Men with Ven plc Trial Balance As at 31 March 2020 | ||
| ||
Equity shares |
| 100,000 |
8% debentures |
| 50,000 |
Share premium |
| 9,500 |
Retained profits |
| 12,976 |
Motor vehicles (cost) | 210,000 |
|
Accumulated depreciation |
| 19,000 |
Inventories | 14,167 |
|
Accounts receivable | 11,000 |
|
Accounts payable |
| 8,336 |
Bank | 10,906 |
|
Sales |
| 270,620 |
Purchases | 186,000 |
|
Wages | 33,502 |
|
Electricity expenses | 350 |
|
Rent expenses2 | 2,218 |
|
General expenses | 1,112 |
|
Debenture interest | 4,000 |
|
|
|
|
The junior member of staff has identified the following errors but does not know how to correct them:
- A payment of 150 for electricity was entered in the Bank Account but was not recorded in the Electricity Expense Account.
- There is a debit in the Rent Expense Account for 718 and a debit to the bank account for the same amount.
- A sale for 1,200 has been entered correctly in Accounts Receivable but as 120 in the Sales Account.
- A payment to a supplier of 457 has been correctly recorded in Accounts Payable Account but no other entry has been made.
- Prepare journal entries to correct the above errors and prepare a T-account for the Suspense Account showing the entries.
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