Journals

donnas1977donnas1977 Well-KnownPosts: 182Registered
Hey

was looking at dec 09 paper and got confused with the journal entry. Question was

There is a debit balance of £750 in the suspense account. The following two errors have now been discovered. A cash sale of £330 has been duplicated in the cash book. The other entries are correct. Office expenses of £1,200 have been entered in the office expenses account as £120.
Note: You should remove any incorrect entries, and then post the correct entries.

Am i right in thinking the following would be the correct posting

opening balance 750
DR Cash Sales 660 CR Cash Sales 330
DR Office Expenses 120 CR Office Expenses 1200

1530 1530

thanks

Donna

Comments

  • CJCCJC Font Of All Knowledge Posts: 1,657Registered
    You're essentially right but I'd have done the journal like this

    xxxxxxxxxxxxxxxxxxxxdrxxxxcr
    Suspensexxxxxxxxxx330
    xxxxxCash Book xxxxxxxxx330
    Correction of duplicate posting

    Office Expensesxxxx1080
    xxxxxSuspensexxxxxxxxxxx1080
    Correction of posting error

    then post the journal entries to the three T-accounts thus clearing the Suspense a/c
  • MargaMarga Experienced Mentor Posts: 981Registered
    CJC wrote: »
    You're essentially right but I'd have done the journal like this

    xxxxxxxxxxxxxxxxxxxxdrxxxxcr
    Suspensexxxxxxxxxx330
    xxxxxCash Book xxxxxxxxx330
    Correction of duplicate posting

    Office Expensesxxxx1080
    xxxxxSuspensexxxxxxxxxxx1080
    Correction of posting error

    then post the journal entries to the three T-accounts thus clearing the Suspense a/c


    i too did the correction of the entries first and then how it should have been posted
  • JK9194JK9194 New Member Posts: 18Registered
    hi,

    i read this question so i have done my self to put in debit / credit side...


    supense account in credit side = £750
    cash receipt in credit side = £330
    office expense in debit side = (1200-120)= £1080

    the total balance is dr- £1080 cr- £1080

    this answer should be right

    thanks
    Joshua
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