Plato Ltd Trial Balance as at 31st October 2009 was balanced by the inclusion of the...

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Plato Ltd Trial Balance as at 31st October 2009 was balanced by the inclusion of the following debit balance of $5,500 in the Suspense Account Subsequent investigation revealed the following errors 9 Opening Inventory was understated by $5.500 A trade credit of $1,850 received from John Browning in November 2008 has been posted to the credit of John Brown. In recording discount allowed of $1,750 in September 2009, Plato debited of the Discount received account and credited accounts receivable. In preparing the Trial Balance, Plato omitted completely an invoice amounting to $6,700 for insurance. A payment of $978 to Half Moon Hotel in May 2009 has been posted correctly in the Cash Book but as $879 in the accounts payable. The draft accounts for the year ended 30 September 2009 of Plato Ltd show a net loss of $1,000. Required: a) Prepare the journal entries of each transaction to correct each error. (Narratives are not necessary) Plato Ltd Trial Balance as at 31st October 2009 was balanced by the inclusion of the following debit balance of $5,500 in the Suspense Account Subsequent investigation revealed the following errors 9 Opening Inventory was understated by $5.500 A trade credit of $1,850 received from John Browning in November 2008 has been posted to the credit of John Brown. In recording discount allowed of $1,750 in September 2009, Plato debited of the Discount received account and credited accounts receivable. In preparing the Trial Balance, Plato omitted completely an invoice amounting to $6,700 for insurance. A payment of $978 to Half Moon Hotel in May 2009 has been posted correctly in the Cash Book but as $879 in the accounts payable. The draft accounts for the year ended 30 September 2009 of Plato Ltd show a net loss of $1,000. Required: a) Prepare the journal entries of each transaction to correct each error. (Narratives are not necessary)

Answer rating: 100% (QA)

a Journal Entries to Correct Errors 1 Opening Inventory und... View the full answer