AQA 2015, Unit 1 Qu. Doreen has extracted a trial balance for her engineering business at 31 January 2015. The totals of the trial balance did not agree and a suspense account has been opened to enable the financial statements to be produced. The following errors have now been discovered. (1) She has forgotten to record a cash payment to the cleaner for £95. (2) Her sales day book total was overstated by £650. (3) Petrol expenses of £450 have been entered into the car insurance account. (4) Doreen has treated as business expenses a family holiday costing £895. (5) Doreen paid a supplier, Craig, by cheque £645. The entries made for the cheque were to debit the bank account with £546 and credit Craig’s account with £456. I don't understand why a suspense entry would be needed for (2) (mark scheme shows credit sales by 650 for suspense)- but if the SDB is overstated by the amount, won't the trade receivables and sales a/cs be overstated by the same amount too, so cancel each other?
So, when any form of 'sales' occurs, trade receivables are never affected as the customer has already paid for it and, they don't have anything to give back to you.
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Very clear and easy to understand, thank you.
I can't figure if you are being sarcastic or real🤔🤔
Thank you! Much appreciated 💚
Thank you. This helped me to understand better.
excellent, very clear, really helps to work through examples.
Thank you, your explanation is clear.
that was beuatiful sir
Your videos are so helpful! many thanks
You're very welcome!
need more videos in correcting errors sir
Great video!
how if only dr / cr one site only (wrongly recorded as single entry)？may i know how to do the journal entry to record the error？
AQA 2015, Unit 1 Qu.
Doreen has extracted a trial balance for her engineering business at 31 January 2015. The
totals of the trial balance did not agree and a suspense account has been opened to enable the
financial statements to be produced.
The following errors have now been discovered.
(1) She has forgotten to record a cash payment to the cleaner for £95.
(2) Her sales day book total was overstated by £650.
(3) Petrol expenses of £450 have been entered into the car insurance account.
(4) Doreen has treated as business expenses a family holiday costing £895.
(5) Doreen paid a supplier, Craig, by cheque £645. The entries made for the cheque were to
debit the bank account with £546 and credit Craig’s account with £456.
I don't understand why a suspense entry would be needed for (2) (mark scheme shows credit sales by 650 for suspense)- but if the SDB is overstated by the amount, won't the trade receivables and sales a/cs be overstated by the same amount too, so cancel each other?
So, when any form of 'sales' occurs, trade receivables are never affected as the customer has already paid for it and, they don't have anything to give back to you.
YOU ARE AMAZING!.THANK YOU
Thank you a lot you helped me very much
Very helpful
Why don't you use suspense account to correct error to the second question?
Thanks
thanks
Eliminate 😂