Example 2

U Thant Zaw Oo @ KMD Institute 1

You have extract a trial balance and drawn up accounts for the year
ended 31 December 20x6.

There was a shortage of $ 292 on the credit side of the trial balance, a
suspense account being opened for that amount.
During 20x7 the following errors made in 20x6 were located:

(i)$55 received from revenues of old office equipment has been entered
in the revenues account.

(ii)Purchases day book had been overcast by $60.

(iii)A private purchase of $115 had been included in the business

purchases.

(iv)Bank charges $38 entered in the cash book have not been posted to
the bank charges account.

(v)A revenues of inventories to B Cross $690 was correctly entered in

the revenues book but entered in the personal account as $960.
REQUIRED
 (a)Show the requisite journal entries to correct the error.

 (b)Write up the suspense account showing the correction of the

errors.

 (c)The net profit originally calculated for 20x6 was $11,370. Show
your calculation of the correct figure.
(i) $55 received from revenues of old office equipment has been
entered in the revenues account.

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

Revenue Account Disposal of Office equ: Account

55 55 55
(ii)Purchases day book had been overcast by $60.

၁။ မွားေသာ စာရင္းကို အရင္ဖင ြ ့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

Purchases Account Suspense Account

+60 60 60
(iii)A private purchase of $115 had been included in the
business purchases.

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

Purchases Account Drawing Account

115 115 115
(iv)Bank charges $38 entered in the cash book have
not been posted to the bank charges account.

စာရင္းမသြင္းရေသးရင္ ျပန္သြင္းမယ္။

Bank charges သည္ စရိတ္ျဖစ္သည့္အတြက္

Bank charges A/c – Dr

Bank charges Account Suspense Account

38 38

Debit, Credit မညီလွ်င္ Suspense A/c ဖြင့္ပါ။

(v)A revenues of inventories to B Cross $690 was correctly
entered in the revenues book but entered in the personal
account as $960.
960
၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။ (690)
၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။ 270 ပို
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

B Cross Account Suspense Account

960 270 270
Correcting Journal
Date Detail F/o Dr Cr
Revenue A/c 55
Disposal of office equipment A/c 55
(Wrongly entered in revenue
account, now rectified)
Suspense A/c 60
Purchases A/c 60
(Wrong figure in purchases
account, now rectified)
Drawing A/c 115
Purchases A/c 115
(Wrongly entered in purchases
account, now rectified)
Correcting Journal
Date Detail F/o Dr Cr
Bank charges A/c 38
Suspense A/c 38
(Omitted in bank charges account,
now rectified)
Suspense A/c 270
B Cross A/c 270
(Wrong figure in B Cross account,
now rectified)
 (b)Write up the suspense account showing the correction of the
errors.

There was a shortage of $ 292 on the credit side of the trial balance, a
suspense account being opened for that amount.

Suspense account
Detail $ Detail $
Purchases 60 Balance b/d 292
B Cross 270 Bank charge 38

330 330
(i)$55 received from revenues of old office equipment has been entered in the
revenues account.

Office equipment ေရာင္းရေငြသည္ ကုန္ေရာင္းစာရင္း (Sale) တြင္ပါေနသည့္အတြက္

Sales တန္ဖိုးမ်ားေနမည္။

 Sales မ်ားရင္ Gross profit မ်ားမယ္၊ Net profit မ်ားမယ္ အမွန္လို ႏုတ္

(ii)Purchases day book had been overcast by $60.

Purchase daybook တြင္ ပိုေပါင္းထားလွ်င္ Purcahse A/c တြင္ ပိုေနသည့္ အတြက္

Purchases တန္ဖိုးမ်ားေနမည္။

 Purchases မ်ားရင္ Gross profit နည္းမယ္၊ Net profit နည္းမယ္ အမွန္လို ေပါင္း
(iii)A private purchase of $115 had been included in the business purchases.

ကိုယ္ေရးကိုယ္တာဝယ္ယူသည့္ Drawing သည္ ကုန္ဝယ္စာရင္း (Purchases) တြင္

ပါေနသည့္အတြက္ Purchases တန္ဖိုးမ်ားေနမည္။

 Purchases မ်ားရင္ Gross profit နည္းမယ္၊ Net profit နည္းမယ္ အမွန္လို ေပါင္း

(iv)Bank charges $38 entered in the cash book have not been posted to the
bank charges account.

Bank charges (ဘဏ္စရိတ္) ကို စာရင္းမသြင္းရေသးလွ်င္

Expense တန္ဖိုးနည္းေနမည္။

 Expense နည္းလွ်င္ Net profit မ်ားမယ္ အမွန္လို ႏုတ္

(v)A revenues of inventories to B Cross $690 was correctly entered in the
revenues book but entered in the personal account as $960.

 လူနာမည္စာရင္းတြင္ မွားျခင္းသည္ အျမတ္ထိခိုက္မႈ မရွိ။

$
Original net profit for the year 11,370
Add Less
i Wrongly entered in revenue 55
ii Overcast in purchase 60
iii Wrongly entered in purchase 115
iv Omitted in bank charges 38
v No effect
175 93 + 82
Corrected net profit for the year 11,452
Calculation of corrected profit

U Thant Zaw Oo @ KMD Institute 16

 Statement of profit or loss Statement of profit or loss
$ $ $ $
Revenue 1000 Revenue 1100
- Cost of Sale - Cost of Sale
Opening inventory 100 Opening inventory 100
Purchases +700 Purchases +700
800 800
- Closing inventory (200) (600) - Closing inventory (200) (600)
Gross Profit 400 Gross Profit 500
+ Other income +100 + Other income +100
500 600
-Expenses (200) -Expenses (200)
Profit for the year 300 Profit for the year 400

Sales မ်ားရင္ Gross profit မ်ားမယ္၊ Net profit မ်ားမယ္ အမွန္လို ႏုတ္

Sales နည္းရင္ Gross profit နည္းမယ္၊ Net profit နည္းမယ္ အမွန္လို ေပါင္း
 Statement of profit or loss Statement of profit or loss
$ $ $ $
Revenue 1000 Revenue 1000
- Cost of Sale - Cost of Sale
Opening inventory 100 Opening inventory 200
Purchases +700 Purchases +700
800 900
- Closing inventory (200) (600) - Closing inventory (200) (700)
Gross Profit 400 Gross Profit 300
+ Other income +100 + Other income +100
500 400
-Expenses (200) -Expenses (200)
Profit for the year 300 Profit for the year 200

O/I မ်ားရင္ Gross profit နည္းမယ္၊ Net profit နည္းမယ္ အမွန္လို ေပါင္း

O/I နည္းရင္ Gross profit မ်ားမယ္၊ Net profit မ်ားမယ္ အမွန္လို ႏုတ္
 Statement of profit or loss Statement of profit or loss
$ $ $ $
Revenue 1000 Revenue 1000
- Cost of Sale - Cost of Sale
Opening inventory 100 Opening inventory 100
Purchases +700 Purchases +800
800 900
- Closing inventory (200) (600) - Closing inventory (200) (700)
Gross Profit 400 Gross Profit 300
+ Other income +100 + Other income +100
500 400
-Expenses (200) -Expenses (200)
Profit for the year 300 Profit for the year 200

Pur: မ်ားရင္ Gross profit နည္းမယ္၊ Net profit နည္းမယ္ အမွန္လို ေပါင္း

Pur: နည္းရင္ Gross profit မ်ားမယ္၊ Net profit မ်ားမယ္ အမွန္လို ႏုတ္
 Statement of profit or loss Statement of profit or loss
$ $ $ $
Revenue 1000 Revenue 1000
- Cost of Sale - Cost of Sale
Opening inventory 100 Opening inventory 100
Purchases +700 Purchases +700
800 800
- Closing inventory (200) (600) - Closing inventory (300) (500)
Gross Profit 400 Gross Profit 500
+ Other income +100 + Other income +100
500 600
-Expenses (200) -Expenses (200)
Profit for the year 300 Profit for the year 400

C/I မ်ားရင္ Gross profit မ်ားမယ္၊ Net profit မ်ားမယ္ အမွန္လို ႏုတ္

C/I နည္းရင္ Gross profit နည္းမယ္၊ Net profit နည္းမယ္ အမွန္လို ေပါင္း
 Statement of profit or loss Statement of profit or loss
$ $ $ $
Revenue 1000 Revenue 1000
- Cost of Sale - Cost of Sale
Opening inventory 100 Opening inventory 100
Purchases +700 Purchases +700
800 800
- Closing inventory (200) (600) - Closing inventory (200) (600)
Gross Profit 400 Gross Profit 400
+ Other income +100 + Other income +200
500 600
-Expenses (200) -Expenses (200)
Profit for the year 300 Profit for the year 400

Income မ်ားရင္ Gross profit မထိ၊ Net profit မ်ားမယ္ အမွန္လို ႏုတ္

Income နည္းရင္ Gross profit မထိ၊ Net profit နည္းမယ္ အမွန္လို ေပါင္း
 Statement of profit or loss Statement of profit or loss
$ $ $ $
Revenue 1000 Revenue 1000
- Cost of Sale - Cost of Sale
Opening inventory 100 Opening inventory 100
Purchases +700 Purchases +700
800 800
- Closing inventory (200) (600) - Closing inventory (200) (600)
Gross Profit 400 Gross Profit 400
+ Other income +100 + Other income +100
500 500
-Expenses (200) -Expenses (300)
Profit for the year 300 Profit for the year 200

Expense မ်ားရင္ Gross profit မထိ၊ Net profit နည္းမယ္ အမွန္လို ေပါင္း

Expense နည္းရင္ Gross profit မထိ၊ Net profit မ်ားမယ္ အမွန္လို ႏုတ္
Sales GP NP - Purchase GP NP +

Sales GP NP + Purchase GP NP -

C/I GP NP - O/I GP NP +

C/I GP NP + O/I GP NP -

Income GP NP - Expense GP NP +

Income GP NP + Expense GP NP -
Example 3

U Thant Zaw Oo @ KMD Institute 24

Alison Bates and Colin Dale have been in partnership for a
number of years. The net profit for the year ended 31 March
20x8 was $151,720.

Additional information
1. The purchase of a motor vehicle for $3,000, on 1 April
20x7, has been debited to the motor vehicle expenses
account. The motor vehicle has an estimated useful life of 3
years and will have no scrap value.

2. The total of discount allowed $457 has been credited to

the discount received account.
3. the receipt of $396 from Sid Ashley, a customer, has
been correctly entered in the cash book but has been debited
to Sid Ashley’s account as $369.

4. A credit sale to John Breasley of $146 has been debited

to the account of Jack Brears.
 (a) Prepare Journal entries to correct the errors 1-4 above.
Narratives are not required.

 (b) Prepare a suspense account showing the corrections

made.

 (c) Prepare a detailed calculation showing the corrected

net profit.
 1. The purchase of a motor vehicle for $3,000, on 1 April
20x7, has been debited to the motor vehicle expenses account.

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

Motor vehicle expense Account Motor vehicle Account

3000 3000 3000
1. The motor vehicle has an estimated useful life of 3 years and
will have no scrap value.

Motor vehicle account မွာ $3000 ကို စာရင္းမသြင္း ရေသး၍ ၄င္းအတြက္

တန္ဖိုးေလ်ာ့ Depreciation သည္လည္း စာရင္း မသြင္းရေသးပါ။
$3000−0
Depreciation of MV = = $ 1000
3

Depreciation ကို စာရင္းသြင္းလွ်င္

Depreciation A/c – Dr, Accumulated Depreciation A/c - Cr
Depreciation Account Accumulated dep: Account
1000 1000

Debit, Credit ညီေနသည့္အတြက္ Suspense A/c ဖြင့္ရန္ မလိ။ု

2. The total of discount allowed $457 has been credited to
the discount received account.

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။
Discount received Account Discount allowed Account
457 457 457

Suspense Account
457

457
3. the receipt of $396 from Sid Ashley, a customer, has been
correctly entered in the cash book but has been debited to Sid
Ashley’s account as $369. 396
(369)
၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။ 27 လို
၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
(၄င္း အမွားမ်ိဳးသည္ ကိန္းဂဏန္းမွားသည့္အျပင္ Dr/Cr Side ပါမွားေနသည့္ အတြက္
ကိန္းဂဏန္းကြာဟခ်က္ကို ေခ်ရံုျဖင့္ ျပင္၍ မရပါ။)
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။
Sid Ashley Account Suspense Account
369 369 369

396 396
4. A credit sale to John Breasley of $146 has been debited to
the account of Jack Brears.

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

Jack Brears Account John Breasley Account

146 146 146
Correcting Journal
Date Detail F/o Dr Cr
Motor vehicle A/c 3000
Motor vehicle expense A/c 3000
(Wrongly entered in Motor vehicle
expense account, now rectified)
Depreciation of motor vehicle A/c 1000
Accumulated depreciation A/c 1000
(Omitted in both accounts, now
rectified)
Discount received A/c 457
Discount allowed A/c 457
Suspense A/c 914
(Wrongly entered in Discount
received account, now rectified)
Correcting Journal
Date Detail F/o Dr Cr
Suspense A/c 765
Sid Ashley A/c 765
(Wrong side in Sid Ashley account,
now rectified)
John Breasley A/c 146

Jack Brears A/c 146

(Wrongly entered in Jack Brears
account, now rectified)
 (b) Prepare a suspense account showing the
corrections made.

Suspense account
Detail $ Detail $
Balance b/d 149
Sid Ashley 765 Discount receive 457
Discount allow 457

914 914
1. The purchase of a motor vehicle for $3,000, on 1 April 20x7, has
been debited to the motor vehicle expenses account.

Motor vehicle ဝယ္သည့္တန္ဖိုးသည္ Motor vehicle expenses တြင္ပါေနသည့္ အတြက္

Expense တန္ဖိုးမ်ားေနမည္။

 Expense မ်ားရင္ Net profit နည္းမယ္ အမွန္လို ေပါင္း

1. The motor vehicle has an estimated useful life of 3 years and will
have no scrap value.

M.V ကို စာရင္းမသြင္းမိသည့္အတြက္ တန္ဖိုးေလ်ာ့ Depreciation သည္လည္း

စာရင္းမသြင္းရေသး။ ထိ႔ေု ၾကာင့္ Expense တန္ဖိုး နည္းေနမည္။

 Expense နည္းရင္ Net profit မ်ားမယ္ အမွန္လို ႏုတ္

2. The total of discount allowed $457 has been credited to the discount
received account.

Discount allowed (စရိတ္) ကို Discount received (ဝင္ေငြ) အေနျဖင့္ ေဖာ္ျပမိ၍

ဝင္ေငြမ်ားေနသလို စရိတ္တြင္လည္း နည္းေနမည္။

 Income မ်ားရင္ Net profit မ်ားမယ္ အမွန္လို ႏုတ္

 Expense နည္းရင္ Net profit မ်ားမယ္ အမွန္လို ႏုတ္ (ထို႔ေၾကာင့္၂ၾကိမ္ ႏုတ္ရမည္)

3. The receipt of $396 from Sid Ashley, a customer, has been correctly
entered in the cash book but has been debited to Sid Ashley’s account as
$369.

 လူနာမည္စာရင္းတြင္ မွားျခင္းသည္ အျမတ္ထိခိုက္မႈ မရွိ။

4. A credit sale to John Breasley of $146 has been debited to the
account of Jack Brears.

 လူနာမည္စာရင္းတြင္ မွားျခင္းသည္ အျမတ္ထိခိုက္မႈ မရွိ။

$
Original net profit for the year 151720
Add Less
1 Wrongly entered in M.V expense 3000
Omitted Depreciation 1000
2 Wrongly entered in discount receive 914
3 No effect
4 No effect
3000 1914 +1086
Corrected net profit for the year 152806
Example 4

U Thant Zaw Oo @ KMD Institute 39

On 31 May 2017 Zhang’s draft accounts showed a profit for the
year of $81 650
An investigation revealed the following errors.
 1. Discount received of $78 had been entered twice in the
discount received account.
 2. A payment, $176, for general expenses, had been correctly
entered in the cash book, but was entered as $167 in the
general expenses account.
 3. A payment, $50, for repairs and renewals, had been entered
in the cash book. The other entry had not been made.
 4. On 1 December 2016 a payment of $5 000 for plant and
equipment had been entered in the general expenses account.
Depreciation is charged for each month of ownership at 20%
per annum on a straight line basis.
(a) Prepare the suspense account.

(b) Calculate the adjusted profit for the year.

1. Discount received of $78 had been entered twice in the
discount received account.

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

Discount received Account Suspense Account

78 78 78

78
2. A payment, $176, for general expenses, had been correctly
entered in the cash book, but was entered as $167 in the
general expenses account. 176
(167)
၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။ 9 လို
၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။
General expense Account Suspense Account
167 9

9
 3. A payment, $50, for repairs and renewals, had been entered
in the cash book. The other entry had not been made.

စာရင္းမသြင္းရေသးရင္ ျပန္သြင္းမယ္။

Payment for repair and renewals သည္ စရိတ္ျဖစ္သည့္အတြက္

Repair and renewals A/c – Dr

Repair and renewals Account Suspense Account

50 50

Debit, Credit မညီလွ်င္ Suspense A/c ဖြင့္ပါ။

4. On 1 December 2016 a payment of $5 000 for plant and
equipment had been entered in the general expenses account.

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

General expense Account Plant and equipment Account

5000 5000 5000
Depreciation is charged for each month of ownership at 20%
per annum on a straight line basis.

Plant and equip: account မွာ $5000 ကို စာရင္းမသြင္း ရေသး၍ ၄င္းအတြက္
တန္ဖိုးေလ်ာ့ Depreciation သည္လည္း စာရင္း မသြင္းရေသးပါ။
(1 Dec 2016 – 31 May 2017)
Depreciation of P&E = $ 5000 x 20% x 6 12 = $ 500
Depreciation ကို စာရင္းသြင္းလွ်င္
Depreciation A/c – Dr, Accumulated Depreciation A/c - Cr
Depreciation Account Accumulated dep: Account
500 500

Debit, Credit ညီေနသည့္အတြက္ Suspense A/c ဖြင့္ရန္ မလိ။ု

 Suspense account
Detail $ Detail $
Balance b/d 137
Discount receive 78
General expense 9
Repair & renew: 50
137 137
1. Discount received of $78 had been entered twice in the discount received
account.

Discount received (ဝင္ေငြ) ကို ၂ၾကိမ္ စာရင္းမွတ္မိသည့္အတြက္

Income တန္ဖိုးမ်ားေနမည္။

 Income မ်ားရင္ Net profit မ်ားမယ္ အမွန္လို ႏုတ္

2. A payment, $176, for general expenses, had been correctly entered in the
cash book, but was entered as $167 in the general expenses account.

General expense $176 ကို $167 ဟုစာရင္းသြင္းမိသည့္အတြက္

Expense တန္ဖိုး နည္းေနမည္။

 Expense နည္းရင္ Net profit မ်ားမယ္ အမွန္လို ႏုတ္

3. A payment, $50, for repairs and renewals, had been entered in the cash
book. The other entry had not been made.

Repair and renewals (စရိတ္) ကို စာရင္းမသြင္း ရေသးလွ်င္

Expense တန္ဖိုး နည္းေနမည္။

 Expense နည္းရင္ Net profit မ်ားမယ္ အမွန္လို ႏုတ္

4. On 1 December 2016 a payment of $5 000 for plant and equipment had

been entered in the general expenses account.

Plant and equipment ဝယ္သည့္တန္ဖိုးသည္ General expenses တြင္ပါေနသည့္ အတြက္

Expense တန္ဖိုးမ်ားေနမည္။

 Expense မ်ားရင္ Net profit နည္းမယ္ အမွန္လို ေပါင္း

Depreciation is charged for each month of ownership at 20% per annum
on a straight line basis.

Plant and equ: ကို စာရင္းမသြင္းမိသည့္အတြက္ တန္ဖိုးေလ်ာ့ Depreciation သည္လည္း

စာရင္းမသြင္းရေသး။ ထိ႔ေ
ု ၾကာင့္ Expense တန္ဖိုး နည္းေနမည္။

 Expense နည္းရင္ Net profit မ်ားမယ္ အမွန္လို ႏုတ္

 $
Original draft profit for the year 81650
Add Less
1 Twice error in discount receive 78
2 Wrong figure in general expense 9
3 Omitted in repair and renewal 50
4 Wrongly entered in general expense 5000
Omitted in depreciation 500
5000 637 +4363
Adjusted profit for the year 86013
Example 5

U Thant Zaw Oo @ KMD Institute 52

On 31 July 2018 Hatton prepared a trial balance that did not balance. The
difference was posted to a suspense account.

(a) Complete the table to show the entries necessary to correct each error.
The first correction has been shown as an example.
A payment of $350 to Jones had been recorded in the account of James.

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

James Account Jones Account

350 350 350
A receipt of $175 had been recorded twice in the commission received
account.

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

Commission received Account Suspense Account

175 175 175

175
A cheque payment for $45 for advertising had been recorded in the cash
book correctly but recorded as $54 in the advertising account.
54
၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။ (45)
၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။ 9ပို
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

Advertising Account Suspense Account

54 9 9
A receipt of $3 600 for rent had been recorded correctly in the cash book.
No other entries had been made.

စာရင္းမသြင္းရေသးရင္ ျပန္သြင္းမယ္။

ငွားခ ဝင္ေငြ ရတဲ့အတြက္ Bank A/c မွာ Dr (မွန္ကန္စြာသြင္းျပီး)

Rental income A/c မွာ Cr

Rental income Account Suspense Account

3 600 3 600

Debit, Credit မညီလွ်င္ Suspense A/c ဖြင့္ပါ။

Wages included $750 taken by Hatton for his own use.

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

Wages Account Drawing Account

750 750 750
A sales invoice of $85 to Haynes had been recorded as $58

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။ 85

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။ (58)
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။ 27လို
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

Haynes Account Sales Account

58 58

27 27

***Invoice (Source document) မွာ မွားရင္ Prime entry (Daybook) မွာ မွားမယ္။
Daybook မွာ မွားရင္ Ledger posting လုပ္ေတာ့ သက္ဆိုင္ရာ ledger စာရင္း ၂ ခုစလံုးမွာ မွားမယ္။
 Debit Credit
Errors
$ $

A payment of $350 to Jones had been recorded

Jones 350 James 350
in the account of James.

Commission Suspense
A receipt of $175 had been recorded twice in
received
the commission received account.
175 175

A cheque payment for $45 for advertising had

Suspense Advertising
been recorded in the cash book correctly but
9 9
recorded as $54 in the advertising account.

A receipt of $3 600 for rent had been recorded Suspense Rental

correctly in the cash book. No other entries income
had been made. 3 600 3 600
 Debit Credit
Errors
$ $

Wages included $750 taken by Hatton for his Drawing Wages

own use. 750 750

A sales invoice of $85 to Haynes had been Haynes Sales

recorded as $58 27 27
(b) Prepare the suspense account.

Suspense account
Date Detail $ Date Detail $

Balance b/d 3434

Advertising 9 Commission received 175
Rent received 3600

3609 3609
(c) State the type of error in each of the following situations.

Situation
1. A sales invoice has not been entered in any of the accounting records.
2. A motor vehicle purchased for business use has been entered in the
accounts as a motor expense.
3. Payment to J Smith has been entered in the account of T Smith.
4. The rent paid account and sales account have both been overstated by
$100

(c) Type of errors

1. Errors of omission
2. Errors of principle
3. Errors of commission
4. Compensating Error
Example 6

U Thant Zaw Oo @ KMD Institute 64

1. Cash received of $126 had been entered in the cash book as $216

2. A cash sale had been debited to the sales account and credited to the cash
account.

(a) State the type of error made in each scenario.

Error 1 = Error of original entry

Error 2 = Error of reversal

On 31 May 2018, Glynis’s trial balance did not balance. The difference was
posted to a suspense account.
She identified the following errors:

• a receipt from a credit customer, $1 200, had been entered correctly in the
cash book. No other entries had been made

• a payment for general expenses, $133, had been entered correctly in the
general expenses account. No other entries had been made

• goods costing $85 had been returned to a credit supplier. This had been
entered correctly in the purchases returns account, but had been credited to
the trade payables ledger control account.
On 31 May 2018, Glynis provided the following balances after the
preparation of the statement of profit or loss.
$
Bank 3 920
Drawings 10 000
Equity 1 June 2017 98 350
Other receivables 1 500
Profit for the year 37 304
Property, plant and equipment
Cost 198 000
Accumulated depreciation 84 500
Trade payables ledger control 4 998
Trade receivables ledger control 12 895
• a receipt from a credit customer, $1 200, had been entered correctly in the
cash book. No other entries had been made

စာရင္းမသြင္းရေသးရင္ ျပန္သြင္းမယ္။

Customer ဆီက ရျပီးသြားရင္ ရရန္ေလ်ာ့တဲ့အတြက္ Trade receivable A/c မွာ Cr

Trade receivable Account Suspense Account

1200 1200

Debit, Credit မညီလွ်င္ Suspense A/c ဖြင့္ပါ။

• a payment for general expenses, $133, had been entered correctly in the
general expenses account. No other entries had been made

စာရင္းမသြင္းရေသးရင္ ျပန္သြင္းမယ္။

General expenses အတြက္ေငြေပးလိုက္တဲ့အတြက္ Bank A/c မွာ Cr

Bank Account Suspense Account

133 133

Debit, Credit မညီလွ်င္ Suspense A/c ဖြင့္ပါ။

• goods costing $85 had been returned to a credit supplier. This had been
entered correctly in the purchases returns account, but had been credited to
the trade payables ledger control account.

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

Trade payable Account Suspense Account

85 85 85

85 85
(b) Prepare the suspense account.

Suspense account
Date Detail $ Date Detail $
Balance b/d 1163
Trade receivable 1200 Trade payable 170
Bank 133
1333 1333

(b) Prepare the statement of financial position at 31 May 2018.

• a receipt from a credit customer, $1 200, had been entered correctly in the
cash book. No other entries had been made

စာရင္းမသြင္းရေသးရင္ ျပန္သြင္းမယ္။

Customer ဆီက ရျပီးသြားရင္ ရရန္ေလ်ာ့တဲ့အတြက္ Trade receivable A/c မွာ Cr

Trade receivable Account Suspense Account

1200 1200

Trade receivable သည္ အျမဲ Dr လက္က်န္ အမွားျပင္လို႔ Cr သြင္းမယ္ဆိုေတာ့ ႏုတ္မယ္။

• a payment for general expenses, $133, had been entered correctly in the
general expenses account. No other entries had been made

စာရင္းမသြင္းရေသးရင္ ျပန္သြင္းမယ္။

General expenses အတြက္ေငြေပးလိုက္တဲ့အတြက္ Bank A/c မွာ Cr

Bank Account Suspense Account

133 133

Bank သည္ ယခုပုစၥာတြင္ Dr လက္က်န္ အမွားျပင္လို႔ Cr သြင္းမယ္ဆိုေတာ့ ႏုတ္မယ္။

• goods costing $85 had been returned to a credit supplier. This had been
entered correctly in the purchases returns account, but had been credited to
the trade payables ledger control account.

၁။ မွားေသာ စာရင္းကို အရင္ဖြင့္ပါ။

၂။ ပုစၥာတြင္ေပးထားေသာ အမွားအတိုင္း သြင္းပါ။
၃။ အမွားကို ေခ်ပါ။ အမွန္မေရာက္ေသးပါက အမွန္အတိုင္းသြင္းပါ။
၄။ Debit, Credit မညီလွ်င္ Suspense account ဖြင့္ပါ။

Trade payable Account Suspense Account

85 85 85

85 85

Trade payable သည္ အျမဲ Cr လက္က်န္ အမွားျပင္လို႔ Dr သြင္းမယ္ဆိုေတာ့ ႏုတ္မယ္။

 Glynis
Statement of financial position at 31 May 2018
Cost Accumu: Carrying
Dep: Value
$ $ $
Non-current Asset
Property, plant and equipment 198 000 84 500 113 500
Current Asset
Trade receivable ($12 895 – 12 00) 11 695
Other receivable 1 500
Bank ($3 920 – 133) + 3 787 + 16 982
Total Assets 130 482
 $ $ $
Equity and Liabilities
Capital 98 350
+ Profit for the year 37 304
135 654
- Drawing (10000)
Equity 125 654
Current liabilities
Trade payable ($4 998 – 170) +4 828
Total Equity and Liabilities 130 482
 Correction of Statement of financial position

1. Debit လက္က်န္ကိုမူတည္ျပီး

Debit သြင္းရင္ ေပါင္း, Credit သြင္းရင္ ႏုတ္

2. Credit လက္က်န္ကိုမူတည္ျပီး

Credit သြင္းရင္ ေပါင္း, Debit သြင္းရင္ ႏုတ္

3. Bank Balance ဆို မူလ လက္က်န္ကို အရင္ၾကည့္

*** အေပါင္း အႏုတ္လုပ္ရင္ သတိထားပါ ***

အေပါင္းအႏုတ္ရွင္းျပီး လက္က်န္ = Dr လက္က်န္ Current asset,

= Cr လက္က်န္ Current liabilities