Correction of errors – Additional Questions
The Trial Balance totals did not agree. The difference of $104 was entered on the debit side of
the suspense account. After checking the accounts the book-keeper found the following errors:
1. $34 written off as bad debts was recorded in the debtors account only.
2. The returns outwards day book had been undercast by $40 and the wrong total posted to the
(c) Goods sold to Jim, $320, posted to his account as $300.
(d) A cash payment of $90 for rates was entered in the cash book but not posted to the rates
You are required to correct the errors and eliminate the suspense account.
The difference in the Trial Balance totals, $225 had been entered on the debit side of the
suspense account. Subsequently the following errors were found:
1. Drawings of goods during the year amounting to $90 was completely omitted from the books.
2. Returns inwa