What are the journal entries to correct the following errors?
1. In recording an issue of shares at par. Cah received of $72 was credited to ordinary share capital account as $60.
2. Cash $72 paid for plant repairs was correctly accounted for in the cash book but was credited to the plant asset account.
3. The petty cash book balance of $72 had been omitted from the trial balance.
4. A cheque for $72 paid for the purchase of a motor car was debited to the motor vehicles account as $ 60.
Suggested Solution:
| 1 | Debit | Suspense account | 12 | Credit | Ordinary Share | 12 |
| 2 | Debit | Plant Repair | 72 | |||
| Debit | Plant asset | 72 | Suspense account | 144 | ||
| 3 | Debit | Petty Cash | 72 | Credit | Suspense account | 72 |
| 4 | Debit | Motor Vehicle | 12 | Credit | Suspense account | 12 |