The trial balance of Deba Duwa Enterprise failed to agree. The difference was entered in the suspense account. The following errors were later detected:
i. A sum of $1000 received from Salako has been posted to his account;
ii. The sales day books was undercast by $560
iii. Return outwards books was overcast by $140
iv. Discount received, $410 from Damilola had been correctly entered in the cash book but not posted to Damilola's account
v. Goods worth $750 returned to a supplier was recorded in his personal account as $750
vi. Discount allowed was overcast by $310
vii Discount received column in the cash book has been overcast by $400.
You are required to prepare:
(a) Journal entries to correct the errors
(b) Suspense Account.
i. A sum of $1000 received from Salako has been posted to his account;
ii. The sales day books was undercast by $560
iii. Return outwards books was overcast by $140
iv. Discount received, $410 from Damilola had been correctly entered in the cash book but not posted to Damilola's account
v. Goods worth $750 returned to a supplier was recorded in his personal account as $750
vi. Discount allowed was overcast by $310
vii Discount received column in the cash book has been overcast by $400.
You are required to prepare:
(a) Journal entries to correct the errors
(b) Suspense Account.
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
Correct Answer: Option
Explanation:
(a) Deba Duwa Enterprise General Ledger/Journal proper
(b) Suspense account
(a) Deba Duwa Enterprise General Ledger/Journal proper
| $ | $ | |
| 1,000 | 1,000 | |
| ii. Suspense accountSales accountSales account undercast now corrected | 560 | 560 |
| iii. Returns outwards accountSuspense accountReturns outwards overcast now corrected | 140 | 140 |
| iv. Damilola accountSuspense accountDiscount received from Damilola not posted now corrected | 410 | 410 |
| v. Suppliers accounts/trade creditors account suspense accountValue of gds returned understated in supplier's acc now corrected | 180 | 180 |
| vi. Suspense accountDiscount allowed accountDiscount allowed overcast now corrected | 310 | 310 |
| vii. Discount received accountSuspense accountDiscount received overcast now corrected | 400 | 400 |
(b) Suspense account
| $Salako account 1000Sales account 560Disct allowed acc 310 1,870 | $Returns outwards account 140Damilola account 410Supplier's account 180Discount received account 400Difference in trial balance 740 1,870 |