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The trial balance of Harris as at 31 December 20x1 showed a difference which was posted to a suspense account. Drafted final accounts for the
The trial balance of Harris as at 31 December 20x1 showed a difference which was posted to a suspense account. Drafted final accounts for the year ended 31 December 20x1 were prepared showing a net profit of $47,240. The following errors were subsequently found:
1. Sales of $450 to Thomas Chan had been debited to Thomson Chan.
2. A payment of $275 for electricity charges had been entered on the debit side of the electricity account as$375.
3. The sales journal had been undercast by $2,000
4. Repairs to a machine amounting to $390 had been charged to Machinery account.
5. A cheque for $1,500 being rent received from Atlas Ltd had only been entered in the Cash Book.
6. Purchases from K Ltd of $765 had been completely omitted.
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