A trial balance of Lutare failed to agree by Tshs 210,000, a shortage on the credit side of the trial
balance. Asuspense account was opened for hte diference. nI January 2012 the folowing errors
made in December 2011 were found:
(а)
Sales day book had been undercast by Tshs 200,000.
(b)
Sales of Ths 610,000 to Lutare had been debited ni error to Lutaro 's account.
(c)
Rent account had been undercast by Tshs 90,000.
(d)
Discount allowed account had been overcast by Tshs 100,000.
(е)
The sale of a machine at net book value had been credited ni error to sales account Require Tshs
230,000
d:
(a) Show journal entries necessary to correct the errors.
(b) Draw up a suspense account after
errors described have been corrected