Answer to Question #62545 in Accounting for Asif

Question #62545
Modern Traders completed books of accounts, prepared Trial Balance for 30th June 2006. It found “debits” exceeded “credits” by $ 27,880 and was credited to suspense account, after sometime following errors were detected: Sales returns book was undercast by $1,000. Purchase of furniture for $3,000 was passed through purchase day book. $3,750 paid as wages to workers for making show-cases was charged to wages account. Purchase of $ 6,710 was posted to the debit of creditors account as $ 6,170. A cheque for $2,000 received from Saleem was dishonoured & was passed to the debit of allowances account. Goods costing $ 1,000 had been returned by a customer and were taken into stock but no entry was made in the books. A sale of $ 2,000 to Imran & co. was credited to their account. Sale amounting to $10,000 was passed through purchased day book. The customer’s account had however been correctly debited. Required: (A) Journal Entries (without narration) to rectify the errors with reasons. (B) suspense Account
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