(c) 12.4 1. Jakesis a sole trader. His financial year ends on 30 September each year....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(c) 12.4 1. Jakesis a sole trader. His financial year ends on 30 September each year. He drew up the following trial balance When it was totalled it was found that totals of two sides did not agree, which resulted in a suspense account being opened. Draft Trial Balance as at 30 September 137 600 Purchases 230 600 Sales 3 200 Sales returns Purchases returns 2 200 23 100 Inventory at 1 October 20X4 Carriage inwards Carriage outwards Wages and salaries Insurance Discount allowed General expenses Rent receivable (Cr) Bank overdraft 2. 800 1 400 Bank loan 6 000 Premises 100 000 Motor vehicles 26 000 Capital at 1 October 20X4 Drawings Trade receivables and Trade payables 125 000 29 800 Read & Write Puble Suspease 36 100 27 110 2 290 397 400 397 400 neau d vveneru duutis A sale to David had been correctly entered in the Sales Day Book as $230 but was wrongly posted to David's account as $320. Accrued wages of $1 000 not accounted for. Purchases day book over-added by $2 200 Surplus fittings, book value $2 400, had been sold for $3 000 cash. The only entries made in the books were a debit of $3 000 in the cash account and a credit in the sales account. Goods costing $230 were sold on 28 March 20X4. The usual entries were made but collection of the goods by the customer was delayed and they were included in the inventory valuation at 31 March 20X4. Jakes had paid rent of $500 of his house from the business account. This had been included in the rent еxpense. (vi) REQUIRED (a) (b) Prepare the journal entries to correct the above errors. Draw up suspense account concluding with a nil balance. (c) 12.4 1. Jakesis a sole trader. His financial year ends on 30 September each year. He drew up the following trial balance When it was totalled it was found that totals of two sides did not agree, which resulted in a suspense account being opened. Draft Trial Balance as at 30 September 137 600 Purchases 230 600 Sales 3 200 Sales returns Purchases returns 2 200 23 100 Inventory at 1 October 20X4 Carriage inwards Carriage outwards Wages and salaries Insurance Discount allowed General expenses Rent receivable (Cr) Bank overdraft 2. 800 1 400 Bank loan 6 000 Premises 100 000 Motor vehicles 26 000 Capital at 1 October 20X4 Drawings Trade receivables and Trade payables 125 000 29 800 Read & Write Puble Suspease 36 100 27 110 2 290 397 400 397 400 neau d vveneru duutis A sale to David had been correctly entered in the Sales Day Book as $230 but was wrongly posted to David's account as $320. Accrued wages of $1 000 not accounted for. Purchases day book over-added by $2 200 Surplus fittings, book value $2 400, had been sold for $3 000 cash. The only entries made in the books were a debit of $3 000 in the cash account and a credit in the sales account. Goods costing $230 were sold on 28 March 20X4. The usual entries were made but collection of the goods by the customer was delayed and they were included in the inventory valuation at 31 March 20X4. Jakes had paid rent of $500 of his house from the business account. This had been included in the rent еxpense. (vi) REQUIRED (a) (b) Prepare the journal entries to correct the above errors. Draw up suspense account concluding with a nil balance.
Expert Answer:
Related Book For
Financial Accounting and Reporting
ISBN: 978-1292162409
18th edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
B. Good drew up the following trial balance as at 31 March 20X3. Closing information included the following: 1. Inventories at the yearend were valued at £35,650. 2. An accrual for wages of...
-
B. Good drew up the following trial balance as at 31 March 20X3. Extract the statement of profit and loss for the year ended 31 March 20X3 and statement of financial position as at that date....
-
Blue Builders Ltd Blue Builders is a construction company that develops various types of buildings and houses. The entity has a 31 December year-end. Depreciation construction equipment After...
-
Papas Fried Chicken bought equipment on January 2, 2013, for $ 39,000. The equipment was expected to remain in service for four years and to perform 11,000 fry jobs. At the end of the equipments...
-
Dr. Springer tried unsuccessfully for over a year to collect a $ 1,000 debt from Byrd, a prominent citizen of the community, for services rendered. One evening at a dinner party, Springer casually...
-
If mean speed of the prime mover is increased then the coefficient of fluctuation of speed will (a) increase (b) decrease (c) remains same (d) unpredictable.
-
Why is it necessary to sometimes redact portions of a document that is produced to the opposing side?
-
1. Has TomTom done the appropriate planning to operate strategically and competitively? 2. What opportunities and threats do you see for TomTom? What macro-environmental trends contribute to your...
-
1 F G K M R Question 1: On January 1st, 2020 Mandrake Company grants 5,000,000 shares of its $2 par common stock as restricted stock units for their employees. The market value on the grant date is...
-
Risk and Probability Dianne Hospitality is considering the purchase of one of two cooking units, A and B, for its pub in the Lake District region of UK. Each of the units requires an initial...
-
Suresh Company reports the following segment (department) income results for the year. Sales Expenses Department M $ 66,000 Department N $ 38,000 Department 0 $ 59,000 Department P $ 45,000 Avoidable...
-
Explain how economic growth may bring about an increase in potential output. the world, especially China. China's foreign direct investment in new projects such as renewable energy, textile factories...
-
Explain how investment may result in economic growth.
-
Explain three factors that might lead to an increase in the supply of a currency.
-
Explain how increased foreign direct investment might promote economic growth.
-
"A moral obligation bond is a form of a limited general obligation bond." Explain why you agree or disagree with this statement.
-
3. What should unions do to make themselves more attractive to newly hired Generation Y employees?
-
What is a content filter? Where is it placed in the network to gain the best result for the organization?
-
Rumpus plc is a public listed manufacturing company. Its summarized consolidated financial statements for the year ended 31 March 2014 (and 2013 comparatives where relevant) are as follows: Rumpus...
-
The approach in IAS 39 to the impairment of financial assets was flawed because it did not allow financial institutions to recognize the true losses they expected on loans at the time they had made...
-
The following list of balances has been extracted from the records of Cowgale company as at 31 October 2011, the end of Cowgale's most recent financial year: The following additional information is...
-
Typically most large scale commercial developments require an environmental impact assessment to be undertaken as part of the planning process. While more a regulatory requirement, such an assessment...
-
Use the data presented in 12.13. The probability of the monthly contribution from the new product exceeding 13 500 is: (a) 24.5% (b) 30.5% (c) 63.0% (d) 92.5% 12.13: A company expects to sell 1000...
-
Most businesses will try to minimize risk through a combination of risk assessment, risk management and, where possible, transfer the risk to another party. For businesses, risks like theft, fire...
Study smarter with the SolutionInn App