When the trial balance of Maumivu Ltd as at 30th September 2018 was prepared, a difference was found. A suspense Account was created in order to accommodate the balance:

Question

Examination of the books showed the following:

1. Discount allowed of TZS.76,000,000 had been credited to the Discount Received Account.

2. A sale of TZS.151,000,000 to Mr. Allan had been posted correctly to the personal account but entered in the Sales Day Book as TZS.115,000,000

3. A cheque received from Mr. Ben entered correctly in the Cash Book as TZS.766,000,000 had been posted to the company’s account as TZS.760,000,000

4. The purchase of new machinery for TZS.1,200,000,000 had been posted to the Stock Account. Depreciation is ignored for the year in which the machinery is purchased.

5. A sale of TZS.265,000,000 to Mr. Charles had not been posted to his account.

6. A petty cash balance of TZS.100,000,000 was omitted from the trial balance.

7. Bank interest charges of TZS.720,000,000 were correctly entered in the Cash Book but the other side of the double entry had been omitted.

REQUIRED:
(i) Prepare Journal entries to correct the above errors, without narrations.
(ii) Prepare a Suspense Account

Leave an answer

Sorry, you do not have permission to answer to this question .