Question 1

a) Dr ($) Cr ($)
1) Delivery Van 1,500
Motor Vehicles 1,500

2) Profit and Loss a/c 250

Cash 250

3) Suspense a/c 187

Discounts Allowed 187

4) Suspense a/c 587

Hand 587

5) Suspense a/c 45
Brown 45

b) Suspense a/c
Hand 587 Diff. as per Trial Balance 819
Disc. Allowed 187
Brown 45
819 819

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 Question 4

a) Dr ($) Cr ($)
1) Heini Jones 36
Suspense 36

2) R. Snowden 236
R. Wyddfa 236

3) Rent Receivable 90
Postage and Telephone 90

4) Suspense a/c 38

5) Suspense a/c 1,087

Director's Fee (Liability towards Director) 1,087

b) Statement showing revised Profit figure

Incorrect Profit figure 25,000
Less: Discounts Allowed (38)
Revised profit figure 24,962

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 Question 6

a) Dr ($) Cr ($)
1) Equipment 7,000
Purchases 7,000

2) Discounts Received 40
Discounts Allowed 40
Suspense a/c 80

3) Debtor 155
Bank 155

4) Suspense a/c 100

Returns Inwards 50
Returns Outwards 50

5) Drawings 60
Suspense a/c 60
Insurance 120

b) Corrected Trial Balance at 31 March 1992

Debit ($) Credit ($)
Capital 50,000
Motor Vehicles 8,000
Equipment 17,300
Stock 11,810
Purchases 162,400
Sales 264,030
Premises 65,000
Debtors 28,200
Creditors 11,050 31,040
Discounts Allowed 640
Discounts Received 1,210
Wages 38,000
Sales Returns 80
Purchase Returns 260
Drawings 700
Insurance 600
General Expenses 2,760
Bank 11,050
346,540 346,540

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