Journal entries question

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:32AM in AAT student discussion
Hi all,
I would be grateful if anyone coud point me in the right direction with this question as my brain is fried!
I'm trying correct an error in transfering info from the purchases day book to the purchase ledger control account.
The day book has four headings: admin, expenses, VAT and gross but the admin figure has been debited to the PL control account instead of the gross figure. So the journal entries I have figured so far would be:
PL Control a/c - debit £2k
admin a/c - credit £2k
PL Control a/c - credit £8k

What would the remaining entries be to ensure that the journal balances? All other figures have been transfered over correctly.
Thanks in advance,
Vicki.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Journal entries question

    Please could you tell me the amount and accounting ledgers you had posted from the daybook. Thanks Roy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Journal entries question

    hi Roy,
    the amounts for each heading are:
    Admin 2000
    expenses 4600
    VAT 1155
    Gross 7755
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Journal entries question

    I think it might be to debit admin £2000
    debit suspense £2000
    credit PLC £4000
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Journal entries question

    I'm not sure if you meant that the £2000 was credited to the PLC instead of the Admin account or in addition to the Admin account. It's been a while since I've done a journal, but this is my take.

    The first scenario - £2000 posted erroneously to the PLC but not to the Admin a/c:

    Cr PLC £2000
    Dr Admin £2000
    [Reverses the incorrect posting of the £2000. This kind of error does not affect the TB so the suspense account won't be involved]

    Cr PLC £7755
    Dr Suspense £7755
    [Adds the £7755 gross figure into the PLC where it should be. This error doesimpact on the TB so there needs to be an adjustment to the suspense account]

    The second scenario - £2000 has been correctly posted to the admin a/c as well as erroneously to the PLC

    Cr PLC £2000
    Dr Suspense £2000
    Cr PLC £7755
    Dr Suspense £7755
    [This time both errors affect the TB so both corrections will invlove the suspense a/c]

    Chris

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