A full correction, start to finish
One trial balance that will not agree, three errors, three journals. Sort the errors, clear the suspense account and check the result.
Task 1Step 1: sort the errors2 questions
Wren Street Florist's trial balance at 31 July had total debits of £61,200 and total credits of £60,850. Nadia opened a suspense account with a credit balance of £350. She then finds three errors.
- Error 1: the Sales account was added up £500 too low
- Error 2: a payment of £75 for motor expenses was credited to Bank, and credited to Motor expenses too
- Error 3: a new flower fridge costing £900 was debited to Repairs instead of Shop equipment
Only an error that unbalanced the trial balance has a side in suspense. An entry posted to the wrong side throws the columns out by twice its amount.
Task 2Step 2: write the journals4 questions
Task 3Step 3: check the result4 questions