Anais owns a general store. She makes payments of both capital and revenue items and has both
Question:
Anais owns a general store. She makes payments of both capital and revenue items and has both capital and revenue receipts.
a. Complete the following table by placing a tick (✓) to indicate how each item could be classified.
When calculating her profit for the year ended 29 February 20–4, Anais discovered some errors had been made in the accounting records.
Error 1 Redecorating of the original premises had been debited to the premises account.
Error 2 Payment of loan interest had been debited to the loan account.
Error 3 Commission received had been credited to the sales account.
Error 4 Proceeds of sale of office fixtures at book value had been credited to the sales account.
b. Complete the following table by placing a tick (✓) to indicate the effect of each error on the profit for the year.
Step by Step Answer:
Cambridge IGCSE And O Level Accounting Coursebook
ISBN: 9781316502778
2nd Edition
Authors: Catherine Coucom