1
Your bookkeeper extracted a trial balance on 31 December 2005 which failed to agree by £210,
a shortage on the credit side of the trial balance. A suspense account was opened for the difference.
In January 2006 the following errors made in 2005 were found:
(i) Sales day book had been undercast by £200.
(ii) Sales of £610 to T Vantuira had been debited in error to T Ventura’s account.
(iii) Rent account had been undercast by £90.
(iv) Discounts allowed account had been overcast by £100.
(v) The sale of a computer at net book value had been credited in error to the sales account £230.
You are required to:
(a) Show the journal entries necessary to correct the errors.
(b) Draw up the suspense account after the errors described have been corrected.
(c) If the net profit had previously been calculated at £31,400 for the year ending 31 December
2005, show the calculations of the corrected net profit.