Jeffrey’s trial balance at 30 September 2010 is shown below. [ACCA adapted]

The value of Jeffrey’s inventory at 30 September 2010 was $11 875.
Jeffrey has discovered the following errors in the postings:
(i) An invoice for carriage inwards was posted to the rent account. The invoice was for $264.
(ii) A credit sale invoice for $560 was posted as $650.
(iii) The telephone bill for 30 September 2010 has not been included. The bill is for $297. Required:

(a) Indicate which of the balances in the trial balance will be changed by the correction of the errors, and calculate the corrected balances.

(b) Based on the corrected trial balance, calculate the gross profit and the profit for the year to 30 September 2010.

Transcribed Image Text:

Capital at 1 October 2009 Inventory at 1 October 2009 Trade accounts receivable DR $12 560 12 880 CR $32 285 Trade accounts payable Cash Sales 6 561 4 754 90 935 Purchases 72 674 Carriage inwards 974 Wages 4 684 Rent 3 200 Stationery 3 200 Travel 749 Telephone 853 General expenses 753 Dividends 12 500 129 781 129 781