Andrew King and Fraser Thomson are in partnership running Bennarty Bikes. They have discovered that their...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Andrew King and Fraser Thomson are in partnership running Bennarty Bikes. They have discovered that their Trial Balance as at 30 April failed to agree. The Debit column totalled £5,980 and the Credit column totalled £6,090. On checking the ledger accounts, the following errors were discovered. (1) An entry for £200 had been entered twice in the Sales account. (2) Rent received of £340 had been correctly entered in the Bank account but had been entered on the wrong side of the Rent Received account. (3) An invoice received from A Law for £140 (excluding VAT) had been omitted from the Purchases account only. (4) £450 was withdrawn by Fraser Thomson for his own use. This was only recorded in the Bank account. (a) (i) (ii) Open the account which will allow the Trial Balance to agree. Make the entries in this account only to correct the above errors. (b) The partners in Bennarty Bikes have been discussing the future of their business. Andrew King suggested their business should become a plc. Outline 2 advantages and 2 disadvantages of this move to the partners. (c) Explain why a Bank account can have either a Debit or Credit balance in the Trial Balance. Andrew King and Fraser Thomson are in partnership running Bennarty Bikes. They have discovered that their Trial Balance as at 30 April failed to agree. The Debit column totalled £5,980 and the Credit column totalled £6,090. On checking the ledger accounts, the following errors were discovered. (1) An entry for £200 had been entered twice in the Sales account. (2) Rent received of £340 had been correctly entered in the Bank account but had been entered on the wrong side of the Rent Received account. (3) An invoice received from A Law for £140 (excluding VAT) had been omitted from the Purchases account only. (4) £450 was withdrawn by Fraser Thomson for his own use. This was only recorded in the Bank account. (a) (i) (ii) Open the account which will allow the Trial Balance to agree. Make the entries in this account only to correct the above errors. (b) The partners in Bennarty Bikes have been discussing the future of their business. Andrew King suggested their business should become a plc. Outline 2 advantages and 2 disadvantages of this move to the partners. (c) Explain why a Bank account can have either a Debit or Credit balance in the Trial Balance.
Expert Answer:
Answer rating: 100% (QA)
a i The error account will allow the Trial Balance to agree ii The entries in the error account ar... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Employee earnings records for Slaymaker Company reveal the following gross earnings for four employees through the pay period of December 15. ? For the pay period ending December 31, each employees...
-
Congress enacted provisions in the tax law that permitted 50% bonus depreciation in 2013 for certain assets. a. What types of assets qualified for 50% bonus depreciation? b. How does bonus...
-
What was the total amount of taxes paid by Ajinkya to the suppliers? Ajinkya Electronic Systems, a company in India that manufactures many different electronic products, has to purchase goods and...
-
What will be the value of x after executing the following java statement? Assume that value of x is 5 before the execution. x += x++ - 5;
-
What are the behavioral implications of different organizational designs?
-
How to solve the lift problem of thin wing theory? Try to point out the variation trend of surface vortex intensity along the chord line.
-
What is an attorneys lien?
-
Mr. LN. Vestor is retired and slowly selling some of his assets to supplement his retirement income. He wants to have some idea of how much tax he is going to owe for 2020 on the asset sales that...
-
Have cultural issues become more prominent in recent years (in a Global context as well as Canada specifically)? What forces stand in the way of achieving greater equity and diversity? How does...
-
Design the 4-to-1 MUX two ways Write a Verilog module called mux4to1 to implement 4-to-1 multiplexer using functional descriptions and if-else blocks. Write another Verilog module called...
-
Discussion the following: 1. Are more product choices indeed a problem? Or have the companies done something wrong in the way they introduced them? 2. Are technology companies who introduce...
-
6. Why is a color-blind ideology problematic? Why can't we ignore "color" and create a raceless society? 7. How does Whiteness function as a location of structural advantage? What is your...
-
For the following foundation on piles: DATA: GEOMETRY OF PILECAP COL Pile Dimension: COL Pile capacity in compression, Pa = Pile capacity in tension, Pt= Pile capacity in shear. Va = (646) Length...
-
Here is a small example of the bank data that we will use to illustrate the subtasks below (we only list a subset of the attributes in this example, see the above table for the description of the...
-
2. A carbon steel alloy column of 2 m external diameter operates under vacuum with an absolute internal pressure of 100 mbar. a. Assuming a safety factor of 3, calculate the minimum thickness of the...
-
1. What is one important, not obvious question to ask when it comes to leadership and teamwork overall? 2. Why is the question selected important?
-
John and Mary Rose Tessler have had their home taken in foreclosure. They owe $92,000 on their original mortgage and $8,000 on their second mortgage. A contractor they hired to add on a screened...
-
Archangel Corporation prepared the following variance report. Instructions Fill in the appropriate amounts or letters for the question marks in the report. ARCHANGEL CORPORATION Variance...
-
Julie received a $50 bill for her birthday at the end of January. At the end of February, she spent this $50 and an additional $150 to buy clothes. Her parents then gave her $50 and $125 at the end...
-
A structural engineering consulting company is examining its cash flow requirements for the next 6 years. The company expects to replace office machines and computer equipment at various times over...
-
In 2010, the National Highway Traffic Safety Administration raised the average fuel efficiency standard to 35.5 miles per gallon (mpg) for cars and light trucks by the year 2016. The rules will cost...
-
Describe one occasion where you have been influenced to buy a product or engage in an activity as a direct result of an item of corporate communication, eg social media update; and explain what that...
-
What are the elements of a master budget?
-
Discuss the potential conflict between using a budget as a motivational device and as a means of control.
Study smarter with the SolutionInn App