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Flora extracted a trial balance which did not balance. The totals were:
Dr (S) 76,159
Cr (S) 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 sales ledger
After correcting these errors what should the balance on the suspense account be?
2304cr
Would really appreciate ur assistance
The opening balance on the suspense account will be 1,944 credit.
The first error does not affect the suspense because even though the entry is wrong, the debit does equal the credit.
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.
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