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Q10-9: SUZZY AND DARYL VENTURES The bookkeeper has prepared a preliminary trial balance of Suzzy and Daryl for the year ended Dec 31, as follows. Capital account 110,000 Profit and loss account at 1 January 50,000 Bank loan 30,458 Debtors and creditors 77,240 60,260 Cash in hand and bank overdraft 1,000 5,036 Stocks and work in progress at 1 January 108,000 Fixed assets at cost and depreciation provision at 31 December 161,879 60,943 Depreciation for the year 15,000 Purchased and sales 300,297 400,000 Returns 4,370 4,630 Discounts allowed and received 9,760 6,740 Wages and salaries (net) 12,146 Payments of PAYE income tax 5.988 Payments of National Insurance 4,766 Creditors for PAYE at 1 January 900 Proceeds of sale of fixed assets 2,000 Rent, rates and insurance 18,036 Postage, telephone and stationery 3,009 Repairs and maintenance 2,124 Advertising 4,876 Packaging materials 924 Motor expenses 2,000 Sundry expenses 1.000 Loan interest 4,000 Accrued expenses 6,478 Suspense account 1.030 737.445 737.445 When the bookkeeper discovered that the preliminary trial balance did not balance he made it do so by opening a suspense account and entering the amount on the appropriate side. A subsequent investigation shows the following mistakes have been made.
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