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John Moffat.
John Moffat.-
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garvit
- Topics: 41
- Replies: 32
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Suspense account shows a debit balance of 346.
Following errors were discovered.
-Sales day book was undercast by 400
-purchases of 520 from purchase day book have been recorded in payables ledger control account
-profit on sale of non current asset 670 has been recorded in sundry income account as 760.So after correcting all errors my answer is 136 debit but the answer in the book is 264 credit also they haven’t mentioned sales day book undercast in suspense account. Please tell sir.
John Moffat
- Topics: 57
- Replies: 50594
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The sales day book error does not affect the balancing of the trial balance (because the same wrong total will have entered in both accounts in the general ledger).
As far as the purchases of 520 are concerned, I think you have not typed out the sentence correctly because as you have written it there is no mention of any mistake.
The profit on sale is wrong by the difference of 90, and the correction of this is to Dr Sundry Income 90, and credit suspense account 90.
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.
garvit
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