Is the suspense account necessary? (07 marks) ii. Briefly...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Is the suspense account necessary?
(07 marks) ii. Briefly explain two advantages of maintaining control accounts. (04 Marks) iii. The trial balance prepared by the book keeper of Ramya Traders did not agree at the end of the month. Accordingly the balance was inserted into a suspense account and the trail balance was balanced temporally. Subsequently, the following errors were discovered. Goods purchased from Mr. Silva on credit terms amounting to Rs. S00,000 has been a entered in his account as Rs. 50,000. Cash received from Mr. Namal for settling his due amount of Rs. 200,000 has not b. been entered in the books of accounts. c. Machinery repair and maintenance amount of Rs. 25,000 has been debited to Machinery account. d. Electricity expense paid Rs. 3,750 has been posted in the credit side of both accounts. Rent Income received amounting to Rs. 240,000 has been inserted in the credit side e. of sales account as Rs. 24,000. required to show the relevant journal entries to correct the above errors. You are (05 Marks)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
