What are the journal entries to correct the following errors?
1. In recording an issue of shares at par. Cah received of $144 was credited to ordinary share capital account as $120.
2. Cash $144 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 $144 had been omitted from the trial balance.
4. A cheque for $144 paid for the purchase of a motor car was debited to the motor vehicles account as $ 120.
Suggested Solution:
| 1 | Debit | Suspense account | 24 | Credit | Ordinary Share | 24 |
| 2 | Debit | Plant Repair | 144 | |||
| Debit | Plant asset | 144 | Suspense account | 288 | ||
| 3 | Debit | Petty Cash | 144 | Credit | Suspense account | 144 |
| 4 | Debit | Motor Vehicle | 24 | Credit | Suspense account | 24 |