3.4 There are a number of errors in the T accounts shown below. Note the transactions have been numbered in chronological order and that the cash account is correct.

Required:

(a) List the errors and show the corrected T accounts.

(b) Show that, after correcting the errors, debits = credits.

Capital

£

1 Cash 100,000 Cash

£

£

1 Capital 100,000 2

Stock 4,500 5a Sales 8,000 7

Sundry expenses 200 8

Debtors 15,000 10 Motor vehicles 40,000 12 Creditors 8,000 Cost ofgoods sold

£

£

5b Stock 5,000 6b Stock 12,000 Creditors

£

£

3 Motor vehicles 20,000 4

Stock 10,000 12 Cash 8,000 11 Stock 9,000 Debtors

£

£

5a Sales 8,000 9

Sales 3,000 6a Sales 20,000 8

Cash 15,000 Stock £
£
. 2 Cash 5,400 5b Cost of goods sold 5,000 4 Creditors 10,000 6b Cost of goods sold 12,000 11 Creditors 9,000 «»
Motor vehicles -
£
£
10 Cash 40,000 3 Creditors 20,000 Sales £
£
9 Debtors 3,000 5a Cash 8,000 6a Debtors 20,000