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sir i am very very confused in suspense account , can you please help me out with this sum ?
Opening balance on the suspense account was $6,920.
The company does not have control accounts for its receivables and payables ledgers.
The following errors were found:
In recording an issue of shares at par, cash received of $666,000 was credited to the ordinary share capital account as $660,000.
Cash $5,600 paid for plant repairs was correctly accounted for in the cash book but was credited to the plant asset account.
The petty cash book balance $1000 had been omitted from the trial balance.
A cheque for $156,800 paid for the purchase of a motor car was debited to the motor vehicles account as $174,800.
A contra between the receivables ledger and the payables ledger for $2,400 which should have been credited in the receivables ledger and debited in the payables ledger was actually debited in the receivables ledger and credited in the payables ledger.
Calculate the balance for the suspense account be after making the necessary entries to correct the errors affecting the suspense account?
Please do not type out a full question and expect to be provided with a full answer. You must have an answer in the same book in which you found the question and so please ask about whatever it is in the answer that you are not clear about and then I will explain 🙂
(Have you watched my free lectures on this? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.)
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