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Question 3 The book-keeper of a firm, having been unable to make the trial balance agree raised a Suspense Account in which he entered the difference. The trial balance drawn is as shown below: Business premises Equipment Sales Purchases Inventory Trade payables Trade receivables Bank Rates Trial balance as at December 2021 General expenses Capital Suspense Account DR GH¢ 314,000 200,000 You are required to: 625,000 80,000 90,000 180,000 15,000 25,000 1,000 1,530,000 Pass journal entries to correct the errors Write up the suspense account 3 CR GH¢ Draw up the corrected trial balance 900,000 Upon examination of the books, the following errors were detected; a. The purchases journal had been under-cast by GH¢75,000 b. Goods bought from a supplier amounting to GH¢185,000 had been posted to credit of his account as GH¢158,000 30,000 c. A cheques of GH¢160,000 received from a trade receivable and paid to bank has been dishonoured. Nothing concerning the dishonor has been entered in the books d. An item of GHe8,000 entered in the Sales Returns Book had been posted to the debit of the customer who returned the goods 600,000 e. An old equipment sold at GH50,000 had been entered in the sales day book, the total of which has been posted to the Sales Account f. An amount of GH$45,000 owing to a supplier had been omitted from the list of sundry trade payables 1,530,000 g. Discounts amounting to GH 4,000 allowed to a customer had been duly entered in his account, but not entered in the nominal ledger h. An amount of GH¢10,000 being rates treated as prepaid in the previous year, had not been brought forward as a balance on the Rates Account

Question 3 The book-keeper of a firm, having been unable to make the trial balance agree raised a Suspense Account in which he entered the difference. The trial balance drawn is as shown below: Business premises Equipment Sales Purchases Inventory Trade payables Trade receivables Bank Rates Trial balance as at December 2021 General expenses Capital Suspense Account DR GH¢ 314,000 200,000 You are required to: 625,000 80,000 90,000 180,000 15,000 25,000 1,000 1,530,000 Pass journal entries to correct the errors Write up the suspense account 3 CR GH¢ Draw up the corrected trial balance 900,000 Upon examination of the books, the following errors were detected; a. The purchases journal had been under-cast by GH¢75,000 b. Goods bought from a supplier amounting to GH¢185,000 had been posted to credit of his account as GH¢158,000 30,000 c. A cheques of GH¢160,000 received from a trade receivable and paid to bank has been dishonoured. Nothing concerning the dishonor has been entered in the books d. An item of GHe8,000 entered in the Sales Returns Book had been posted to the debit of the customer who returned the goods 600,000 e. An old equipment sold at GH50,000 had been entered in the sales day book, the total of which has been posted to the Sales Account f. An amount of GH$45,000 owing to a supplier had been omitted from the list of sundry trade payables 1,530,000 g. Discounts amounting to GH 4,000 allowed to a customer had been duly entered in his account, but not entered in the nominal ledger h. An amount of GH¢10,000 being rates treated as prepaid in the previous year, had not been brought forward as a balance on the Rates Account

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 3 The book-keeper of a firm, having been unable to make the trial balance agree raised a Suspense Account in which he entered the difference. The trial balance drawn is as shown below: Trial balance as at December 2021 Business premises Equipment Sales Purchases Inventory Trade payables Trade receivables Bank Rates General expenses Capital Suspense Account DR GH¢ 314,000 200,000 You are required to: ● Pass journal entries to correct the errors Write up the suspense account 3 625,000 80,000 ● Draw up the corrected trial balance 90,000 180,000 15,000 25,000 1,000 1,530,000 CR GHe 900,000 30,000 Upon examination of the books, the following errors were detected; a. The purchases journal had been under-cast by GH$75,000 b. Goods bought from a supplier amounting to GH 185,000 had been posted to credit of his account as GH¢158,000 600,000 c. A cheques of GH¢160,000 received from a trade receivable and paid to bank has been dishonoured. Nothing concerning the dishonor has been entered in the books d. An item of GH¢8,000 entered in the Sales Returns Book had been posted to the debit of the customer who returned the goods e. An old equipment sold at GH50,000 had been entered in the sales day book, the total of which has been posted to the Sales Account f. An amount of GH¢45,000 owing to a supplier had been omitted from the list of sundry trade payables 1,530,000 g. Discounts amounting to GH¢4,000 allowed to a customer had been duly entered in his account, but not entered in the nominal ledger h. An amount of GH¢10,000 being rates treated as prepaid in the previous year, had not been brought forward as a balance on the Rates Account
Transcribed Image Text:Question 3 The book-keeper of a firm, having been unable to make the trial balance agree raised a Suspense Account in which he entered the difference. The trial balance drawn is as shown below: Trial balance as at December 2021 Business premises Equipment Sales Purchases Inventory Trade payables Trade receivables Bank Rates General expenses Capital Suspense Account DR GH¢ 314,000 200,000 You are required to: ● Pass journal entries to correct the errors Write up the suspense account 3 625,000 80,000 ● Draw up the corrected trial balance 90,000 180,000 15,000 25,000 1,000 1,530,000 CR GHe 900,000 30,000 Upon examination of the books, the following errors were detected; a. The purchases journal had been under-cast by GH$75,000 b. Goods bought from a supplier amounting to GH 185,000 had been posted to credit of his account as GH¢158,000 600,000 c. A cheques of GH¢160,000 received from a trade receivable and paid to bank has been dishonoured. Nothing concerning the dishonor has been entered in the books d. An item of GH¢8,000 entered in the Sales Returns Book had been posted to the debit of the customer who returned the goods e. An old equipment sold at GH50,000 had been entered in the sales day book, the total of which has been posted to the Sales Account f. An amount of GH¢45,000 owing to a supplier had been omitted from the list of sundry trade payables 1,530,000 g. Discounts amounting to GH¢4,000 allowed to a customer had been duly entered in his account, but not entered in the nominal ledger h. An amount of GH¢10,000 being rates treated as prepaid in the previous year, had not been brought forward as a balance on the Rates Account
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