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It's due today...please help a,b and c Question 3 (29 marks) The trial balance of Parade Supermarket does not balance and there is a shortage
It's due today...please help a,b and c
Question 3 (29 marks) The trial balance of Parade Supermarket does not balance and there is a shortage of N$2 300 on the debit side. A suspense account is opened in order to complete the final accounts for the year ended 31 December 2012. During January 2013 the following errors were discovered. 1. 2. Goods sold to N Adams on credit, N$2 387 were completely omitted from the books. The total of the creditors journal N$12 543, was posted to the purchases account as N$13 543. 3. The total of the rent received account was overcast by N$350. Goods that the owner took for his own use N$750 were posted to the credit side of the drawings account. The entry in the purchases account was correct. 4. 5. 6. Repairs to vehicles N$1 300 was posted to the credit side of the vehicles account. Payment to a creditor, C van Wyk, of N$1 245 was debited in the bank account and posted to the credit side of C van Wyk's account. 7. A payment received from a debtor, S Maritz, of N$575 was debited in both the bank account and the account of S Maritz. You are required to: a) b) Prepare the journal entries to correct the errors 1 to 7. (19 marks) Prepare the suspense account (7 marks) The trial balance of a business should always balance because of the double entry system. However, the trial balance can still balance although errors have been made. Name and explain three of these errors (6 marks) c)Step by Step Solution
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