Reference no: EM132523406

The trial balance for Sun Ltd prepared on 31 December 2019 had total debits that did not equal the total credits. A suspense account was created with a credit balance of £6,530 in order to balance the trial balance.

An investigation revealed the following:

1) Insurance expense prepaid of £830 at the end of the year had been recorded with the entry Dr Prepayment asset £830, Dr Insurance expense £830.

2) Payment of £540 wages had been credited to administration expenses.

3) Current tax payable of £950 had been reported as an expense and not reported as a liability.

4) A debit balance of £3,200 on the trade receivables account had been incorrectly extracted from the general ledger as £2,300.

5) The opening balance on Machine accumulated depreciation of £5,900 was missing from the trial balance.

Required:

Question a) Record the book-keeping entries to correct the errors and eliminate the suspense account in the trial balance at 31 December 2019