When Q's trial balance failed to agree, a suspense account was opened for the difference. The trial balance totals were:
| Debit $ | 600,000 |
| Credit $ | 599,000 |
The company does not have control accounts for its receivables and payables ledgers.
The following errors were found:
1. In recording an issue of shares at par, cash received of $98,400 was credited to the ordinary share capital account as $93,480.
2. Cash $1,107 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 $900 had been omitted from the trial balance.
4. A cheque for $1,230 paid for the purchase of a motor car was debited to the motor vehicles account as $1,365.
5. A contra between the receivables ledger and the payables ledger for $600 which should have been credited in the receivables ledger nad debited in the payables ledger was actually debited in the receivables ledger and credited in the payables ledger.
What will be the balance on the suspense account be after making the necessary entries to correct the errors affecting the suspense account?
Suggested Solution:
| Debit | $ | Credit | $ |
| Issue of shares | 4,920 | Opening balance | 1,000 |
| Motor vehicle expense | 135 | Plant asset account | 2,214 |
| Petty cash | 900 | ||
| Closing balance | 941 |
To do the same topic again in ACCA F3 correction of errors 6