Peter has extracted the balances from his ledgers as at 30 March 2020. The trial balance won’t balance, the credits exceed the debits by Sh 1,536. You have been asked to help correct the problem. After inspection of the ledger accounts, you have discovered the following errors. For each error indicate (by dragging the answers given at the bottom and dropping at the right place) whether correction would require the use of the suspense account or not. 1. A balance of Sh 818 on a debtor’s account, Mawingu, has been omitted from the schedule of debtors, the total of which was entered as debtors in the trial balance. blank 2. A small piece of machinery purchased for Sh 1,200 had been entered in the repair account. blank 3. The receipts side of the cash book had been under cast by Sh 720. blank 4. The total of one page of the sales journal had been carried forward as Sh 8,154 instead of the correct amount which was Sh 8,514. blank 5. A credit note for Sh 179 received from a supplier, Markone Investments, had been posted on the wrong side of her account. blank 6. An electricity bill in the sum of Sh 152, not yet accrued for, was discovered in the filing tray. blank Do not use suspense account Do not use suspense account Do not use suspense account Use suspense account Use suspense account Do not use suspense account Do not use suspense account Use suspense account Use suspense account Do not use suspense account Use suspense account Use suspense account

Peter has extracted the balances from his ledgers as at 28 February 2023. The trial balance won’t balance, the credits exceed the debits by Sh 1,840. You have been asked to help correct the problem. After inspection of the ledger accounts, you have discovered the following errors: 1. A balance of Sh 1,468 on a debtor’s account, Aspen, has been omitted from the schedule of debtors, the total of which was entered as debtors in the trial balance. Is this one of the six errors? yes (yes/no) To correct this error Debit and Credit (Write only one word for the account name, e.g Suspense) 2. A small piece of equipment purchased for Sh 1,200 had been entered in the purchases account. Is this one of the six errors? (yes/no) To correct this error Debit and Credit (Write only one word for the account name, e.g Suspense) 3. The receipts side of the cash book had been under cast by Sh 800. Is this one of the six errors? (yes/no) To correct this error Debit and Credit (Write only one word for the account name, e.g Suspense) 4. The total of one page of the sales journal had been carried forward as Sh 6,790 instead of the correct amount which was Sh 7,690 Is this one of the six errors? (yes/no) To correct this error Debit and credit with Sh (Write only one word for the account name, e.g Suspense) 5. A credit note for Sh 236 received from a supplier, Markone, had been posted on the wrong side of her account. Is this one of the six errors? (yes/no) To correct this error Debit and Credit with Sh 472 (Write only one word for the account name, e.g Suspense) 6. An electricity bill in the sum of Sh 152, not yet accrued for, was discovered in the filing tray. Is this one of the six errors? (yes/no) To correct the error Debit and Credit with Sh 152 (Write only one word for the account name, e.g Suspense) 7. If the net income before corrections was Sh 11,500, it changed to Sh after the corrections. (insert commas in your answer. 8. After the corrections, total assets will (increase/decrease) by Sh

A trial balance does not balance. The difference has been entered in a suspense account. The following errors are found. 1 A cash payment of $630 for rent has been credited in the cash book and debited to the irrecoverable debts account. 2 The provision for depreciation account has been overcast by $960. 3 The purchases ledger control account balance of $48 300 has been included as a debit balance. What is the correcting debit entry to the suspense account? A $47 340 B $95 010 C $95 640 D $97 560

a) The following summarized trial balance appeared in the books of MakossaEnterprises.Purchases and SalesDR _120,000CR200,000Debtors and creditors 80,000 50,000Cash 40,000Other assets and other Liabilities 240,000 200,000Suspense Account 30,000Total 480,000 480,000Subsequent investigations revealed the following errors:i) A sales invoice of Sh.20,000 had not been recognized in the books of accountsii) A cash receipt from a debtor of Sh.15,000 had not been adjusted in the debtors accountiii) A cash payment to a creditor of Sh.9,500 had been debited to the creditor’s account asSh.4,900iv) A purchase of a computer of Sh.50,000 for use in office work had been debited tothe purchases accountP.O. Box 90830100 Eldoret – KenyaTelephone: 0728458276Fax: 254-20-891084Email:[email protected]/ACD/EXM/SEPT - DEC 2022/GABA/BCOM Page 2ISO 9001:2015 Certified by the Kenya Bureau of Standards.v) The accountant had failed to bring forward a balance of Sh.19,600 in the wagespayable account in the post-closing trial balance of the previous financial yearRequired:i) Journal entries to correct the identified accounting errors (5 Marks)ii) The suspense account (5 Marks)iii) The corrected trial balance

You have extracted a trial balance and drawn up accounts for the year ended 31 December 2023. There was a shortage of Sh 78 on the credit side of the trial balance, a suspense account being opened for that amount. During 2023 the following errors made in 2022 were found: (i) Sh 125 received from sales of old office equipment has been entered in the sales account. (ii) Purchases day book had been overcast by Sh 10. (iii) A private purchase of Sh 140 had been included in the business purchases. (iv) Bank charges Sh 22 entered in the cash book have not been posted to the bank charges account. (v) A sale of goods to Lamibo Sh 230 was correctly entered in the sales book but entered in the personal account as Sh 320. (a) Identify the type of errors (Write one from: one of the six/not one of the six) and where it is one of the six, give the specific name (Select one from: "principle", "commission", "omission", "original", "reversal", "compensating", or "not applicable"). Error Type of error Name of error (i) (ii) (iii) (iv) (v) (b) If the net profit originally calculated for 2023 was Sh 28,400, the net profit after corrections will be

The trial balance can help in detecting errors. Identify which of the following errors would be detected at the point of extracting a trial balance. 1-The bookkeeper enters cash received of Sh 50,000 from Peter Jones as a debit in the cashbook but enters the credit of Sh 50,000 in the ledger account of Roger Jones. 2-The bookkeeper enters a cash sale as a credit of Sh 4,000 in the cash book and as a debit of Sh 4,000 in the sales account. 3-The bookkeeper omits a cash sale of Sh 23,000 from the cash book and from the sales accounts. 4-The bookkeeper enters a cash sale as a debit of Sh 49,000 in the cash book and as a credit of Sh 94,000 in the sales account Choose: not possible to tell; will not be detected, trial balance will still agree; will be detected by the trial balance not agreeing; may or may not be detected