BUS10250 Financial Accounting

Written Assignment 5

When preparing a trail balance, the bookkeeper found it disagreed by $600, the
credit side being much bigger than the debit side. The difference was entered in a
suspense account. The following errors were subsequently found:

1. A cheque for $32 for electricity was entered in the cash book but not posted
to ledger.
2. The debit side of the wages account is overcast by $28.
3. There is a debit in the rent account of $198 but should be $918.
4. The purchase of an office machine for $3,000 has been posted to the debit
side of the purchase account in error.
5. A cheque received from A Li for $80 has been credited to A Lee’s account in
error.
6. The sale of some old office machine for $100 has been credited to sales
account in error.
7. An amount of $17 paid for postage had been entered in the carriage
outwards account in error.
8. Bank charges of $41 shown on the bank statement have not been entered in
the books.
9. A credit sales to J Kong for $120 was entered in the sales day book and J
Kong’s account as $12.
10. Discount received of $124 received from a creditor has correctly entered in
the cash book and purchases ledger but omitted in the general ledger.
Required:

Prepare the journal entries necessary to correct the above errors and show the
suspense account. Narratives not required.