Assignment Topic: Errors

Financial Accounting II

The following Trial Balance was extracted from the books of K. Boorasingh on December 30, 2006:

Dr Cr

Capital 20,600

Drawings 4,550

Stock ( January, 1 2006) 2,150

Debtors 4,380

Creditors 6,122

General expenses 9,602

Sales 66,190

Purchases 33,205

Motor Vehicle at cost 15,000

Provision for depreciation on motor vehicles 5,500

Bank 31,620

100,507 98,412

The Trail Balance does not balance. On investigation, the following errors were discovered:

1.A credit sale to Briggs for $68 had been omitted completely from the books.

2.A purchase of $160 from Simmonds was entered in Simmonds'

3.account but omitted from purchases account.

4.A credit sale to Lee- chins for 129 was entered in the books as $120.

5.Drawings of$100 was recorded as 1,000.

6.A receipt from McBeth for $1,500 being bad debts recovered was entered in the cash book but not credited to any account.

7.An invoice of $145 from S. Harricharm was credited in error to both S. Harricharan andS.Hamilton.

Required:

a)Record the journal entries necessary to correct each of the errors.Narration are not required.(8 marks)

b)Open the suspense account and enter the difference to the trail balance. Post the relevant entries and close the account.(4 marks)

c)Redraft the corrected trail balance.

(8 marks)