Question
The following details were provided by Trendy Enterprise (1)Credit sales to Ree $750 was entered in error to Vee's account (2) Goods at a value
The following details were provided by Trendy Enterprise
(1)Credit sales to Ree $750 was entered in error to Vee's account (2) Goods at a value of $1,200 was returned to Yue (supplier) was completely omitted from the books (3) Equipment bought for use in business for $4 500 was debited to purchases account in error (4) Office cash of $3.000 transferred to the business bank account was debited to the cash account and credited to the bank account in error (5) Credit sales to Fony 5840 was entered correctly in the sales day book but entered in both the relevant accounts as $480 16) Credit note issued to Jolly (debtor) $790 for goods returned being entered in the book of prime entry as $709
REQUIRED: (a) Explain the meaning of i- Error of principle ii-Error of reversal entry iii-Error of original entry (b) List the type of error that has been made in each of the above transactions (c) Show the journal entries needed to correct each of the above errors
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