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The following errors were found in the Books of T. Bowen. A suspense account had been opened until such time as the errors could be
The following errors were found in the Books of T. Bowen. A suspense account had been opened until such time as the errors could be found. A payment for Repairs to vehicle, $180, had been entered in the Motor Vehicle account. The total of the Returns Outwards book, $320, had not been posted to the Ledger. The debit side of a creditor's account was understated by $50. A cheque. $800, received from R. Smith was incorrectly debited to R. Smither's account. A sale of $420 was entered incorrectly as $240, in the account of the debtor, P. Rose. Rent received $120 from a sub-tenant was incorrectly debited to Rents Payable account. Prepaid Insurance of $49 appeared at a credit balance. Discounts c4 $525 appearing on the debit side of the Cash Book were posted to the wrong discounts account. You are required to: Show the journal entries, complete with suitable narratives, necessary to correct these errors. The following errors were found in the Books of T. Bowen. A suspense account had been opened until such time as the errors could be found. A payment for Repairs to vehicle, $180, had been entered in the Motor Vehicle account. The total of the Returns Outwards book, $320, had not been posted to the Ledger. The debit side of a creditor's account was understated by $50. A cheque. $800, received from R. Smith was incorrectly debited to R. Smither's account. A sale of $420 was entered incorrectly as $240, in the account of the debtor, P. Rose. Rent received $120 from a sub-tenant was incorrectly debited to Rents Payable account. Prepaid Insurance of $49 appeared at a credit balance. Discounts c4 $525 appearing on the debit side of the Cash Book were posted to the wrong discounts account. You are required to: Show the journal entries, complete with suitable narratives, necessary to correct these errors
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