Concepts/no specific formulas

Question 1

Suspense Accounts / Error Correction

Answer 1

Identify which errors affect the trial balance
Use journal entries to correct errors
Balance the suspense account

Question 2

Bank Reconciliation

Answer 2

Update cash book → reconcile to bank statement
Again, procedural – no single formula.

Question 3

Partnership Appropriation Accounts

Answer 3

Share of profit = Profit × Partner’s Ratio
Interest on Capital / Drawings: Given in % – calculate as:
Interest = Rate × Amount

Question 4

Bonus and Rights Issue (Share Capital)

Answer 4

Bonus Issue Entry:
Dr Retained Earnings
Cr Share Capital
Rights Issue Entry:
Dr Bank
Cr Share Capital
Cr Share Premium (if issued above par)