Accounting – 3.2 Correction of errors | e-Consult

Sarah Jones is the bookkeeper for "Bright Ideas Ltd". During the year ended 31 December 2023, she made the following errors:

• Debited the Purchases account by £500 instead of crediting it.
• Credited the Sales account by £200 instead of debiting it.
• Debited the Loan from Director account by £300 instead of crediting it.

Prepare a suspense account to rectify these errors. Show the calculations and the final balance of the suspense account.