Question Three

1. State and explain any five advantages of ledger accounts.
2. The following information of Saidia & Company was provided.

Jan 1 Started business with cash $ 30,000 and stock $20,000

Jan 5 Purchased goods from Juma $ 20,000 under 10% trade discount

Jan 10. Cheque $ 15,000 received from Hilary for the earlier credit sales $ 15,200 after allowing a discount in full statement of his account

Jan 20. Drawn for personal use cash $ 2,000, goods $1,000 and by cheque from bank $ 2,000.

Required:

Give journal entries in the books of Saidia & Company.

3. Explain the major errors affecting the trial balance.