Chapter 17: Adjustments to Profit and Suspense Accounts

Priya has prepared a trial balance in which the debit column totals $111,685 and the credit column totals $111,085.

The trial balance does not balance, and Priya realises that this means that there must be errors in the bookkeeping. On investigation, the following errors are discovered:

(a) The sales day book had been undercast by $1,500. The individual entries in the receivables ledger control account were all correct.

(b) Rent paid of $450 had been entered in the cash account, but no entry at all had been made in the rent expense account.

(c) The balance on the accountancy expense account was $540, but it had been listed in the trial balance as $450.

(d) A receipt of $1,260 from a customer had been correctly debited to the cash account, but was credited to the receivables ledger control account as $1,620.

Open a suspense account. For each error make any relevant entries in the suspense account.