Adjustments AP1

sscors

Hello

another AP1 query sorry :blushing:

1.This task is about recording adjustments in the extended trial balance and closing off accounts.

You are working on the final accounts of a business with a year-end of 31 March. A trial balance has been drawn up and a suspense account opened with a credit balance of £1125. You now need to make some corrections and adjustments for the year ended 31 March 20X1.
Record the adjustments needed on the extract from the extended trial balance to deal with the items below.

The figures from the columns of the sales day book for 23 March have been totalled correctly as follows:

Sales column £1000
VAT column £175
Total column £1175

The amounts have been posted as follows:

Cr Sales £1000
Cr VAT £175
Dr Sales ledger control account £1000

I think think this posting is correct but answer says different and not really sure why? :crying:

Richard

sscors wrote: »

Cr Sales £1000
Cr VAT £175
Dr Sales ledger control account £1000

The debit to the SLCA should be £1,175 - I don't know how this helps clear the suspense account though. Is there more info in the question?

Yazi

Sales ledger control account should be Dr £1175

MarkT

As the above posters have said. The SLCA records all sales and all sales VAT as this is a mirror image of what your customer owes you.

sscors

Would there be a credit entry as well?

Yazi

The credit entries are already in your question.