Suspense Account – Exercise 3

Due to high demand of those who wanting the suspense account exercise, so here it is…. and Happy New Year!

Maziah’s trial balance for the month of June 2016 did not balance, the total credits exceeding the total debits by RM1,778 which he had to create a suspense account. However, on 4 July 2016, she discovered the following errors;

• A balance of RM80 on a trade receivables’ account has been omitted from the schedule of trade receivables.
• The receipts side of the cashbook had been under-cast by RM520.
• The total of sales recorded was RM9,154 instead of the correct figure of RM9,514.
• The payment to a creditor of RM179 was posted to the wrong side of his account.
• Purchases was under-cast by RM730.
• Payment from Wahab RM200 was recorded into Wahob’s account.
• A Payment RM450 received from Abbas, the debtor, was credited in the debtor’s account but was not recorded in the bank account.
• Motor vehicle maintenance of RM700 was recorded in the motor vehicle account.

Required:

1. Prepare journal entries to correct the above errors.
2. Draw the suspense account.