Question 3 answer

Question 1 For each of the following errors in the financial statements, write the appropriate Journal to correct the error: 1. Bank charges of 56 have been omitted from the cash book 2. An amount of 52 for stationery has been posted to motor expenses in error 3. A motor expense has been posted as 5,421 instead of the correct amount of 5,241 (10 Marks) Question 2 The following information is provided for Alderson Ltd for the month ended 31 December 2020. The balance shown on the cash book is 157. Consider the following information and calculate the adjusted cash book balance for 31 December 2020. 1. Lodgements not yet presented at the bank amount to 675 2. Bank charges of 79 shown on the bank statement have not been recorded 3. A cheque in the amount of 76 has not been presented to the bank. 4. Direct debits of 426 appear only on the bank statement (7 Marks) Question 3 A. Using the information below, produce the Trade Receivables T-account for this week to ascertain the amount that the company is owed by its customers. 01 November The opening balance on the trade receivables account is 12,256 02 November Cash sales were recorded in the amount of 200. 03 November Credit sales were made in the amount of 350 04 November Payments of 769 were received in respect of credit sales 05 November A large sale to a new customer for 1,430 was made on credit 06 November A credit customer returned their goods costing 250 07 November Credit sales were made in the amount of 874 (13 Marks) B. A client of yours has been extended credit by her suppliers and now intends to offer credit to her customers in return. Offer a short explanation of the changes she can expect to see in her financial statements