Answer to Question #30353 in Finance for avinash singh
a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37.
b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account.
c) An expenditure of Rs. 158 on repairs has been debited to the buildings account.
d) Rs. 80 was allowed by B as discount which has not been entered in the books.
e) A sum of Rs. 125.05 realised on the sale of old furniture has been posted to the sales account.
Give journal entries to rectify the errors and show the suspense account as it would appear after adjustments
Hint: Total of suspense a/c = 78.74
A correcting entry is a journal entry whose purpose is to rectify the effect of an incorrect entry previously made.
The correcting entries will be:
a) Accounts Payable 10
b) Accounts Payable 9
c) Buildings 158
d) Accounts Payable 80
e) Sales 125.05
f) Cash 125.05
Total of suspense a/c = 78.74
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