Please can anyone help me on this suspense a/c?
System
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Hi
This is my weakest area and whatever I do I just cant seem to get it to come right and it is always out by £76!
If anyone can help me I would be so grateful.
After putting together a trial balance you have found that the total of the credit balances is greater than the total of the debit balances by £76. After looking you have found that:
1 - Motor vehicle expenses of £76 have been entered as follows: DR fixed assets, CR Cash
2- Depreciation of £76 for one fixed asset has been left out of the journal entry recording the years depreciation
3 - A page from the sales day book totalling £198 was only credited to sales
4 - One page from the purchases day book for £122 was debited to the PLCA and credited to purchases
5 - Cash sales of £122 were only recorded in the cash book.
Write up the suspense account to clear it.
Thanks
Alyssa x :oops:
This is my weakest area and whatever I do I just cant seem to get it to come right and it is always out by £76!
If anyone can help me I would be so grateful.
After putting together a trial balance you have found that the total of the credit balances is greater than the total of the debit balances by £76. After looking you have found that:
1 - Motor vehicle expenses of £76 have been entered as follows: DR fixed assets, CR Cash
2- Depreciation of £76 for one fixed asset has been left out of the journal entry recording the years depreciation
3 - A page from the sales day book totalling £198 was only credited to sales
4 - One page from the purchases day book for £122 was debited to the PLCA and credited to purchases
5 - Cash sales of £122 were only recorded in the cash book.
Write up the suspense account to clear it.
Thanks
Alyssa x :oops:
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Comments
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Re:Please can anyone help me on this suspense a/c?
Hi Alyssa, did you remember to put an opening balance of DR suspense of £76 to balance the tb?
Suspense entries should read
DR opening balance per tb £76
DR Sales £122
CR SLCA £198
Total journal entries are
DR MV expense a/c £76
CR MV fixed asset £76
DR MV dep £76
CR MV acc depn £76
DR SLCA £198
CR Suspense £198
DR Purchases £244
CR PLCA £244
(I have added the reversal and the correct entry together)
DR Suspense £122
CR Sales £122
Hope this helps you
Jackie0 -
Re:Please can anyone help me on this suspense a/c?
Jackie
Thank you so much!
I understand it now.
I had put in the opening £76 from the tb, but I was having trouble because my understanding of the suspense a/c and how it works is poor. I was trying to put all the errors through the suspense account and just complicating things for myself. On some entries I was asking myself why would you put it through the suspense and just not take it out of the wrong account and put it in the correct one! Now I know thats what I should be doing.
Thanks again for your help
Alyssa
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