The accounts of D R Kookaburra revealed four errors and require correction by general journal. a Rent
Question:
The accounts of D R Kookaburra revealed four errors and require correction by general journal.
a Rent of $869 was incorrectly allocated and posted to rates from the cash payments journal.
b The tax invoice from goods obtained for resale from C King $8283 ($7530 + $753 GST) was erroneously recorded and processed through the purchases journal as $3828 ($3480 + $348 GST) to both the general and subsidiary ledgers.
You are required to prepare:
i the correction journal entry, and ii reversal and correcting general journals.
c Rent received $902 ($820 + $82 GST) was incorrectly allocated in the cash receipts journal as a cash sale.
d Drawings of $220 for inventory taken by the owner and GST of $20 were correctly treated. However, the other entry was allocated to inventory when the periodic inventory system was in use.
Step by Step Answer:
Accounting An Introduction To Principles And Practice
ISBN: 9780170403832
9th Edition
Authors: Edward A. Clarke, Michael Wilson