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(1). A non‐current asset with a carrying amount of $6,250 was disposed of for $7,950. The only accounting entry was to debit cash.
(2). A credit sale of $8,480 was incorrectly entered in the sales day book as $8,840.
(3). The allowance for receivables was increased from $7,000 to $10,780. The allowance account was debited in error.After adjusting for the errors above, what is the balance on the suspense account?
Which one of the following errors would fully account for the difference?
What type of error may explain this?
(1). The total of the discounts received column in the cash book had been posted to the payables ledger control account correctly and debited to the purchases account.
(2). A refund to a credit customer had been recorded by debiting the cash book and crediting the customer’s account.
(3). A cash payment to purchase a motor van had been correctly entered in the cash book but had been debited to the motor expenses account.
(4). The debit side of the wages account had been undercast.
Which of the following correctly states whether or not these errors will be revealed by extracting a trial balance?
What was the original balance on the suspense account?
(1) Sales of $2,000 from the sales day book have been posted to the receivables ledger control account, but no other entry has been made.
(2) The purchases day book was undercast by $870.
(3) Sundry income of $1,850 has been recorded in the sundry income account as $1,580.What was the balance on the suspense account after Elle has corrected the above errors?
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