Question $2$

Jessica Rabbit, owns a retail clothing store in Scotland that has the following details relating to her business activities for the month of January $2018$

January $1$ Cash in hand $$200$; balance overdrawn at bank $$400.$

January $2$ Cash sales $$1,500$; banked cash $$1,200.$

January $7$ Paid Hajib & co$.$ by cheque $ $150.$

January $10$ Received Abdul$$s cheque $$850$ and deposited into bank.

January $14$ Paid salaries in cash $$250$; bought goods for cash $$140.$

January $15$ Sent a cheque to Jones for $$175$; Discount received $$5.$

January $16$ Drew cash from bank for office use $$160.$

January $21$ Cash sales $$121$; paid wages in cash $$120.$

January $22$ Sold furniture for $$90,$ receiving payment by cheque.

January $23$ Received by cheque amounting to $$360$ from Fatah Ahmed; Discount $ $10.$

January $24$ Roger Rabbit paid Jessica $$850$ by cash receiving a $10\%$ discount.

REQUIRED:

a$)$ Prepare a three$-$column cashbook for the month of January, balancing off the account and clearly indicating the amounts for Discount Allowed and Discount Received

Question $3$

The trial balance of Jacksons Pet shop as at $30$ April $2021$ was balanced with the inclusion of the following debit balance: Debit balance to the suspense account $$9,000.$

Subsequent investigations revealed the following errors:

$1)$ Discounts received of $$750$ have been posted to the debit of the discounts allowed account.

$2)$ Wages of $$7,200$ paid in February $2021$ by cheque have been posted to the wages account only.

$3)$ Goods that were purchased on credit from L$.$ Banks $$3,750$ was recorded in the purchases account as $$750.$

$4)$ Sales on credit to a customer, J Riley $$9,600$ was omitted from the customer$$s account.

$5)$ A payment of $$2,550$ to D Whyte in January $2021$ has been posted to the customers account as a credit.

$6)$ A payment to a supplier, A Black $$143$ by cheque was recorded in both accounts as $$413.$

REQUIRED:

a$)$ Prepare the journal entries to correct the above errors

b$)$ Prepare the suspense account as it would appear after all the errors have been corrected.

Do not use AI