a. An accountant found the following errors in the books of Adnan. (1) A purchase for...

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a. An accountant found the following errors in the books of Adnan. (1) A purchase for cash of $750 had been correctly entered into the cash account but had not been entered into the purchase account. (ii) Discount received of $650 had been posted to the debit side of the discounts received account. (iii)Payments of $8,000 to suppliers had been correctly entered in the cash book and payables ledger accounts, but incorrectly posted to the payables control account as $8,800. (iv) Rent of $10,000 had been entered in the wages and salaries account. (v) An invoice for $2,500 to Fatima has been entered in the sales day book as $5,200. This invoice is for goods that are zero rated for VAT. (vi) A payment for business rates of $6,400 had been debited in the cash book and credited to the business rates account. The purchase return day book has been undercast by $800 because of which the purchase returns account should be increase by $800. (vii) Required: Identify the types of each error. (14 Marks) a. An accountant found the following errors in the books of Adnan. (1) A purchase for cash of $750 had been correctly entered into the cash account but had not been entered into the purchase account. (ii) Discount received of $650 had been posted to the debit side of the discounts received account. (iii)Payments of $8,000 to suppliers had been correctly entered in the cash book and payables ledger accounts, but incorrectly posted to the payables control account as $8,800. (iv) Rent of $10,000 had been entered in the wages and salaries account. (v) An invoice for $2,500 to Fatima has been entered in the sales day book as $5,200. This invoice is for goods that are zero rated for VAT. (vi) A payment for business rates of $6,400 had been debited in the cash book and credited to the business rates account. The purchase return day book has been undercast by $800 because of which the purchase returns account should be increase by $800. (vii) Required: Identify the types of each error. (14 Marks)

Answer rating: 100% (QA)

Lets identify the types of errors for each scenario 1 A purchase for cash of 750 had been correctly ... View the full answer