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Question 2. You have identified following errors and thus need to pass necessary journal entries for correction of these errors. 1) Electricity bill payment of
Question 2. You have identified following errors and thus need to pass necessary journal entries for correction of these errors. 1) Electricity bill payment of 10,000 was not entered at all. 2) The accrued security fee amounting to 12000, was entered as Prepaid security fee for next six months. 3) Inventory purchased worth 120,000 from X & Com was entered as cash purchases. 4) Payment to ABC 30,000 for credit purchases of inventory, was entered as cash purchases. 5) Prepaid sales commission 5000 was entered as accrued sales commission. 6) Cash account was under cast by 3000. 7) Cash deposit 50,000 was entered as cash withdrawal. 8) Motor bike costing 60000 was entered as ordinary purchases. 9) Cash payment for petty cash expenses 2000 was entered as Cash receipts. 10) Sales total was overcast by 3000
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