(c) 12.4 1. Jakesis a sole trader. His financial year ends on 30 September each year....

 
 

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.

Answer rating: 100% (QA)

Ans... View the full answer