Question

The trial balance of Papa Kwame Ltd has an excess of credit over debit of GH¢12,500. A suspense account has been opened to balance the accounts. The following transactions were later discovered: i) Interest paid of GH¢5,000 and Interest received of GH¢8,000 have both been entered on the wrong side of the trial balance. ii) The receivable control account balance of GH¢224,387 had been included in the trial balance as GH¢242,387 iii) Sales of GH¢2,000 had been omitted from the sales records (i.e from the sales day book). iv) Purchase of raw material of GH¢4,005 was entered in the purchase account as GH¢4,500. v) The balance on the current account with the Proprietor’s wife had been omitted from the trial balance. This item when corrected will clear the suspense account. Open a suspense account and correct the above transaction in it.