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

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

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

Melissa Opoku extracted the balances from her ledgers on 30 June 2022 and prepared a trial balance as at that date. The trial balance failed to agree, and Melissa opened a suspense account to enable her to proceed with the preparation of draft final accounts. Subsequently, Melissa discovered the following errors: Which of these errors will Melissa correct using the suspense account? 1-An invoice for the purchase of goods from Enkalei on 2 June 2022 had been entirely omitted from the books. The invoice amounted to Sh 300,000 2-The total of the sales daybook for February wa Sh 10,860,000; this had been posted to the sales account as Sh 10,680,000. 3-A cheque received from Charles Antwi a debtor, had been correctly entered in the cash book as Sh 105,000, but had been credited to Antwi’s account as Sh 150,000. 4-A debt of Sh 100,000 in the sales ledger had proved to be bad and had been written off in the sales ledger, but the appropriate entry had not been made in the bad debts account. 5-An improvement to a machine at a cost of Sh 750,000 had been debited to Machinery Repairs instead of to the Machinery (asset) account. Assets are depreciated on the straight-line basis at 10% of cost; a full year’s depreciation is calculated in the year of purchase). Choose: Not possible to tell; Use suspense account; Can choose to use or not; Do not use suspense account

John Okello extracted a trial balance from his books on 31 December 2019. The trial balance did not balance, and the difference was entered in a suspense account. Subsequently, the following errors were discovered: a. Goods purchased from A. Wamiti for Sh 2,400 have been credited to the account of W. Wamiti, another supplier. b. The purchases account has been overcast by Sh 200. c. Office furniture sold for Sh 4,800 has been credited to the sales account d. Sales of goods to Mary Lebo for Sh 5,400 has been posted to the credit of her account e. Carriage outwards for Sh 1,200 has been credited in error to return outwards account. Match each of the errors with the means of correcting it, either using suspense account or not using suspense account Sales of goods to Mary Lebo for Sh 5,400 has been posted to the credit of her account Carriage outwards for Sh 1,200 has been credited in error to return outwards account Goods purchased from A. Wamiti for Sh 2,400 have been credited to the account of W. Wamiti, another supplier. Office furniture sold for Sh 4,800 has been credited to the sales account The purchases account has been overcast by choose: Do not use the suspense account; Use the suspense account; Either use a suspense account or not; There is no error