Wasim is a trader. His financial year ends on 31 March.
The totals of his trial balance on 31 March 2017 did not agree. The difference was a shortage on
the debit side of $395. This was entered in a suspense account.
The following errors were later discovered.
1 The total of a page of the purchases account, $4842, had been carried forward as $4824.
2 A cheque received from DEC Limited, $150, had been credited to the account of DDE Limited.
3 The balance of the petty cash book, $100, had been omitted from the trial balance.
4 Repairs to a motor vehicle, $273, had been debited to the motor vehicles account.
5 Purchase of fixtures, $6000, on credit from OS Supplies had been debited to OS Supplies
and credited to fixtures account.
6 The total of the discount allowed column in the cash book, $450, had been credited to the
discount received account in the ledger.
7 The total of the analysis column for stationery in the petty cash book, $87, had not been
transferred to the stationery account in the ledger.

a)Prepare journal entries to correct two of the errors which do not require correcting by means
of the suspense account. Narratives are required.

Answer rating: 100% (QA)

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