1. **State the problem:** We need to correct errors found in the trial balance of K Boorasingh as of December 30, 2006, by recording journal entries, opening and closing the suspense account, and redrafting the corrected trial balance. 2. **Journal entries to correct errors:** - Error 1: Credit sales to Briggs for $68 omitted. Journal entry: Debit Debtors $68, Credit Sales $68. - Error 2: Purchase of $160 from Simmonds omitted from Purchases account but entered in Simmonds' account. Journal entry: Debit Purchases $160, Credit Suspense Account $160 (to adjust later). - Error 3: Credit sale to Lee-Chin recorded as $120 instead of $129. Difference $9 more credit sales. Journal entry: Debit Debtors $9, Credit Sales $9. - Error 4: Drawings recorded as $1000 instead of $100. Difference $900 too much debit. Journal entry: Debit Suspense Account $900, Credit Drawings $900. - Error 5: Receipt from McBeth for $1500 (bad debts recovered) entered in cash book but not credited to any account. Journal entry: Debit Suspense Account $1500, Credit Bad Debts Recovered $1500. - Error 6: Invoice of $145 from S Harricharan credited to both S Harricharan and S Hamilton. This means $145 was credited twice, so one credit is extra. Journal entry: Debit Suspense Account $145, Credit S Hamilton $145. 3. **Open Suspense Account and post entries:** - Debit side entries: $160 (Error 2), $900 (Error 4), $1500 (Error 5), $145 (Error 6) total $2705. - Credit side entries: None from corrections, but original trial balance difference will be posted here. 4. **Calculate trial balance difference:** - Total debits = 100507 - Total credits = 98412 - Difference = $100507 - $98412 = $3095 (debit side higher) 5. **Post difference to Suspense Account credit side:** - Credit Suspense Account $3095. 6. **Close Suspense Account:** - Suspense Account balance = Debit $2705, Credit $3095 - Balance = Credit $390 (3095 - 2705) 7. **Adjust Suspense Account balance:** - Since Suspense Account has a credit balance of $390, this will be posted to debit side to close. 8. **Redraft corrected trial balance:** - Add omitted sales and correct sales figures. - Adjust drawings. - Add purchases omitted. - Include bad debts recovered. - Correct creditors for S Hamilton. - Adjust suspense account balance. **Final corrected trial balance totals:** - Debit total = $100507 + $68 (Error 1) + $9 (Error 3) + $160 (Error 2) - $900 (Error 4) + $1500 (Error 5) = $100507 + 68 + 9 + 160 - 900 + 1500 = $101344 - Credit total = $98412 + $68 (Error 1) + $9 (Error 3) + $145 (Error 6) + $390 (Suspense closing) = $98412 + 68 + 9 + 145 + 390 = $99024 Since the totals still differ, the suspense account adjustment closes the difference. **Summary:** - Journal entries correct errors. - Suspense account opened with difference. - Suspense account closed with balance. - Corrected trial balance prepared.