You are assisting the accountant on the preparation of the final accounts of a business with a year-end of 31 December. A trial balance has been drawn up and a suspense account opened with a debit balance of £1,235. On investigating the reason for the suspense account, you discover the following errors below that now need to be corrected for the year ended 31 December 2011.

Record the journal entries needed in the general (nominal, main) ledger to deal with the items below by

• Removing any incorrect entries, where appropriate and
• Posting the correct entries

Note: do not provide any descriptions or narratives for the corrections and do not enter zeros into unused column cells. Ignore VAT for this activity.

(a) Entries need to be made for an irrecoverable debt of £680 entered correctly in the sales ledger only

(b) Stationery costing £195 have been paid by cheque. The correct entry was made to the bank account but no other entries were made.

(c) No entries have been made for closing inventory for the year-end 31 December 2011. Closing inventory has been valued at cost at £22,500. Included in this figure are some items costing £3,000 that will be sold for £2,700.