The trial balance of Sofia, a trader, as at 31 January 2017 failed to agree. The...

 

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The trial balance of Sofia, a trader, as at 31 January 2017 failed to agree. The difference was entered in a suspense account. The trial balance difference was RM3,019 (Credit side). The following are the errors that you have found: a) At the end of the accounting year, payment of RM1,500 for rent expenses were omitted from the books. b) Cash discount allowed to Azman, a debtor, of RM20 has not been entered in the cash book. c) Bank charges shown in the cash book as RM430 have been entered in the bank charges account as RM340 in error. d) No entries had been made in the books at the end of the accounting year in respect of a stock of stationery that cost RM100. e) A sales of goods for RM3,000 has been entered in trial balance as RM300. f) The debit side of the electricity account has been over-cast by RM9. g) Interest received of RM250 has been recorded in the books as interest paid. REQUIRED: Prepare journal entries to correct above errors. The trial balance of Sofia, a trader, as at 31 January 2017 failed to agree. The difference was entered in a suspense account. The trial balance difference was RM3,019 (Credit side). The following are the errors that you have found: a) At the end of the accounting year, payment of RM1,500 for rent expenses were omitted from the books. b) Cash discount allowed to Azman, a debtor, of RM20 has not been entered in the cash book. c) Bank charges shown in the cash book as RM430 have been entered in the bank charges account as RM340 in error. d) No entries had been made in the books at the end of the accounting year in respect of a stock of stationery that cost RM100. e) A sales of goods for RM3,000 has been entered in trial balance as RM300. f) The debit side of the electricity account has been over-cast by RM9. g) Interest received of RM250 has been recorded in the books as interest paid. REQUIRED: Prepare journal entries to correct above errors.

Answer rating: 100% (QA)

a Rent expense 1500 Dr Rent expense 1500 Cr Suspense account 1500 b Cash discount allowed 20 Dr Suspense account 20 Cr Accounts receivable 20 c Bank c... View the full answer