Error and Suspense Account

Bernard Hinton is a sole trader who had the following transactions during April Year 7:

1. An amount of$127received from J Smith,a debtor,in settlement of his account,had been treated as a cash sale.

2. During the month,some equipment,which orginally cost$860and for which no allowance for depreciation had yet been made,was sold for$480cash and the proceeds credited to Sales Asscount.No other adjustment had made.

Draw up the Journal entries necessary to correct the errors in 1,2