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Suspense Account - more than one error

The suspense account for financial year ending on 31 December 20X1 showed a balance of $60. In the following year, all the errors were discovered.

  1. A cash receipt of $225 from G Gang & Co. was correctly entered in the cash book but not entered in G Gang & Co.’s account.
  2. Cash sale of $450 was correctly entered in the cash book but recorded incorrectly as $540 in the sales account.
  3. Purchased goods worth $150 on credit from B Bean, entered correctly in Bean’s account but had not entered in purchases account.
  4. Discount of $75 received from Black Hole & Co was entered correctly in Black Hole’s account but was left out of the discount received account.

Journal entries

Date Accounts Folio Debit Credit
$ $
20X2
Jan 31 Suspense 225
G Gang & Co. 225
(Cash received omitted from Gang's account)
Jan 31 Sales 90
Suspense 90
(Sales overstated as $540 instead of $450)
Feb 28 Purchases 150
Suspense 150
(Purchases omitted from purchases account)
Feb 28 Suspense 75
Discounts received 75
(Discounts received omitted from account)


Suspense Account

Date Particulars Folio Amount Date Particulars Folio Amount
$ $
20X2 20X2
Jan 31 G Gang & Co. 225 Jan 01 Balance b/d 60
Feb 28 Discounts received 75 Jan 31 Sales 90
Feb 28 Purchases 150
300 300


G Gang & Co. Account

Date Particulars Folio Amount Date Particulars Folio Amount
$ $
20X2
Jan 31 Suspense 225


Sales Account

Date Particulars Folio Amount Date Particulars Folio Amount
$ $
20X2
Jan 31 Suspense 90


Purchases Account

Date Particulars Folio Amount Date Particulars Folio Amount
$ $
20X2
Feb 28 Suspense 150


Discounts Received Account

Date Particulars Folio Amount Date Particulars Folio Amount
$ $
20X2
Feb 28
Suspense 75


From the above accounts, the difference of $60 in the trial balance is a single-entry in the suspense account. In correcting the errors, double-entry recording is used as can be seen on the journal entries.

Last Updated (Saturday, 04 September 2010 09:08)