Reference no: EM132950122

The trial balance of David Smith as at 31 May 2021 does not balance. The difference of £5,400 has been credited to a suspense account. The following errors were subsequently discovered:

1. The sales day book is understated by £3,000.

2. Purchases received from Sampson and Co amounting to £1,147, had been received on 31 May 2021 and included in the closing inventory at that date. Unfortunately, the invoice had not been entered in the purchases day book.

3. Motor repairs of £585 have been charged to the motor vehicles account.

4. A payment of £425 in respect of electricity has been debited to the electricity account as £575.

5. A cheque for £2,250 received from Thames Ltd, a receivable, has been correctly entered in the cash book but no entry has been made in Thames' account.

Required:

Problem (i) Show the journal entries (excluding narratives) to correct the above errors.

Problem (ii) Write up the suspense account after the correction of above errors.