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Hi sir,
I saw a similar question, but I couldn’t reply to it.Flora, a sole trader, extracted a trial balance which did not balance. The totals were
Dr ($)
Cr ($)
76,159
74,215
She opened a suspense account for the difference and then discovered the following errors
(1) Purchase returns of $120 have been debited to the purchases account and credited to the
purchase ledger control account(2) One page of transactions from the sales daybook with a total of $360 has been posted to the
general ledger, but has not been posted to the receivables ledgerAfter correcting these errors what should the balance on the suspense account be?
$1,944 Dr
$2,064 Dr
$1,464 Cr
$1,944 Cr
.I get the first point. It has a equal debit and credit. So the tb still balances.
But Iam little confused about the 2nd one.
They’re saying that they posted it to the general ledger, which is control a/c ig. But omitted from the receivables ledger. So it will have no impact on the suspense a/c.
Am I right? Can you explain please. Thanks.You are correct. The receivables ledger is not part of the double entry and so it does not affect the trial balance.
(If the total had not been posted to the receivables ledger control account, then it would affect the trial balance because the control account is part of the double entry.)
Thanks John.
But I saw other thread with a similar question,
2) One page of transactions from the sales daybook with a total of $360 has been posted to the general ledger, but has not been posted to the sales ledger
After correcting these errors what should the balance on the suspense account be?
2304 CrAnd you replied as,
As far as the second error is concerned, the 360 should have been debited to the receivables account for the customer in the sales ledger but has not been. So to correct it, debit the account in the sales ledger and credit the suspense account.
So the final balance on the suspense account is 1944 + 360 = $2,304 credit.
So got confused.
You will have to let me have the link to the thread you refer to so that I can see the full wording of the question.
It depends whether it refers to the sales ledger or the sales ledger control account, and whether they keep a sales ledger control account or not.
Have you watched my free lectures on Books of Prime Entry and Control Accounts?
Hi,
here’s the link
https://opentuition.com/topic/suspense-account-mock-test/I have watched all your FA lectures sir.
Thanks for the link.
I have re-read the question (I must have read it too quickly last time) and my answer was wrong.
However I think more likely that the poster had not typed out the question correctly (or else there was a typing error in her book). If the second error has referred to the sales ledger control account (and not simply sales ledger) then my answer would have been correct.
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