Question: When the Trial Balance of Oxford & Co. was prepared, it was found that the total of the credit side exceeded that of the debit side by £1,061 and a Suspense Account was opened with this amount. On checking the records, it was found that:
(1) A debit balance of £520 on Rent Account had been entered on the credit side of the trial balance.
(2) The Sales Account was over-cast by £10.
(3) An invoice of £60 in respect of goods purchased from J. Williams had been credited to the account of J. Williamson.
(4) The purchase of a motor truck for £647 had been correctly entered in the Cash Book but had been posted to the Motor Truck Account as £674.
(5) A balance of £38 due from C. Cambridge had been omitted from the trial balance.
(6) Goods to the value of £40 returned by D. Durham were not entered in the Returns Inwards Book but had been included in the stock on hand.
Write up the Suspense Account showing how it would be affected, if at all, by these errors.
Re-printed by courtesy of the Royal Society of Arts (R.S.A.).