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Dear sir,Could you please help me with solving this exercises?
Samantha has extracted a trial balance and created a suspense account with a credit balance of $759 to make it balance.
Samantha found the following:
(a) A sales invoice for $4,569 has not been entered in the accounting records. (b) A payment of $1,512 has been posted correctly to the payables control account but no other entry has been made.
(c) A credit sale of $131 has only been credited to the sales account.
What is the remaining balance on the suspense account after these errors have been corrected?Why is “credit sales of $131” in credit of suspense account?And why the answer is $622 DEBIT rather than $622 CREDIT?
The missing entry is a debit of 131 to the receivables account.
Therefore to correct the error we debit receivables with 131 and credit the suspense account with 131.
I do not know where you are finding 622 from.
The missing figure to make the account balance is 622 on the credit side of the account.
As always when we balance off any account we transfer the missing figure to the opposite side so as in this case to end up with a debit balance.
As I explain in the lectures working through chapter 3 of our free lecture notes, we are simply replacing a debit of 1,512 and credits totalling 890 with the net figure which is a debit of 622.
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