The trial balance of Deba Duwa Enterprise failed to agree. The difference was entered in the suspense account. The following errors were later detected: i. A sum of $1000 received from Salako has been posted to his account; ii. The sales day books was undercast by $560 iii. Return outwards books was overcast by $140 iv. Discount received, $410 from Damilola had been correctly entered in the cash book but not posted to Damilola's account v. Goods worth $750 returned to a supplier was recorded in his personal account as $750 vi. Discount allowed was overcast by $310 vii Discount received column in the cash book has been overcast by $400. You are required to prepare: (a) Journal entries to correct the errors (b) Suspense Account.
Explanation
(a) Deba Duwa Enterprise General Ledger/Journal proper
i. Suspense accountSalako accountOmission of amount from Salako not entered now corrected
$
$
1,000
1,000
ii. Suspense accountSales accountSales account undercast now corrected
560
560
iii. Returns outwards accountSuspense accountReturns outwards overcast now corrected
140
140
iv. Damilola accountSuspense accountDiscount received from Damilola not posted now corrected
410
410
v. Suppliers accounts/trade creditors account suspense accountValue of gds returned understated in supplier's acc now corrected
180
180
vi. Suspense accountDiscount allowed accountDiscount allowed overcast now corrected
310
310
vii. Discount received accountSuspense accountDiscount received overcast now corrected
