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A)Goods bought from a merchant for 550 had been posted to the credit of his account as 5.500. (B) An item of 1,062 entered in the Sales Return Book has been posted to the debit of the customer who returned the (c) Sundry items of plant sold for 26,000 had been entered in the Sales Book, the total of which book has been posted to Sales Account. (d) 76,000 owing by a customer had been o Give Journal entries necessary to correct these errors and prepare the Suspense?
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A)Goods bought from a merchant for 550 had been posted to the credit o...
Correcting Errors and Preparing Suspense Account

To correct the errors mentioned in the question, the following journal entries are required:

A) Goods bought from a merchant for 550 had been posted to the credit of his account as 5,500.

Debit: Merchant Account 4,950
Credit: Suspense Account 4,950

B) An item of 1,062 entered in the Sales Return Book has been posted to the debit of the customer who returned it.

Debit: Suspense Account 1,062
Credit: Customer Account 1,062

C) Sundry items of plant sold for 26,000 had been entered in the Sales Book, the total of which book has been posted to Sales Account.

Debit: Sales Account 26,000
Credit: Suspense Account 26,000

D) 76,000 owing by a customer had been o

Debit: Customer Account 76,000
Credit: Suspense Account 76,000


Preparing Suspense Account:

The Suspense Account is a temporary account used to record errors that cannot be immediately corrected. It is important to prepare the Suspense Account to ensure that all errors are accounted for and corrected.

The Suspense Account will have the following entries:

Debit: Merchant Account 4,950
Debit: Suspense Account 1,062
Debit: Sales Account 26,000
Debit: Customer Account 76,000

Credit: Suspense Account 107,012

The total of the debit side and the credit side of the Suspense Account should be equal. Once the errors are corrected, the balance of the Suspense Account will be zero.

In conclusion, correcting errors in accounting records is essential to ensure the accuracy of financial statements. Preparing a Suspense Account helps to identify and correct errors that cannot be immediately corrected.
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A)Goods bought from a merchant for 550 had been posted to the credit of his account as 5.500. (B) An item of 1,062 entered in the Sales Return Book has been posted to the debit of the customer who returned the (c) Sundry items of plant sold for 26,000 had been entered in the Sales Book, the total of which book has been posted to Sales Account. (d) 76,000 owing by a customer had been o Give Journal entries necessary to correct these errors and prepare the Suspense?
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