The tal balance extracted from the books of Jewel Traders showed a total debit or Sh.5,630,400 while the credit side amounted to Sh 5.593.800.
The accountant later discovered the following errors:
2.
A cheque for Sh. 36,200 received from a debtor was entered in all the books as sh 20,000.
Discounts allowed north Sh.14,100 were credited to the discounts received accounts in the ledger.
Rent received of Sh 13,200 had been credited to the premises account
Sales day book was undercast by Sh $6.400.
A credit ante for Sh.8.400 issied to a debtor had been entered correctly in the returns account, but had bent
been posted to the relevant intreal nccount.
Acreditne for Sh 13.800 received from a supplier had not been recorded in any book.
Required:
Joumal enines to correct the above errors.
(No narrations required)
(6 marks)
Prepare a duly balanced suspense account
(4 marks)
Question one (6)
The following errors were discovered in the books of ABC Itd at the end of the month of October
2020
(1) Purchases Shs. 14,100 on credit from A Rose had been entered in B Robert's account
(1) A cheque of Sh940 paid for printing had been entered in the cash column of the cash
book instead of in the bank column.
Tin)Sale of goods Shs. 7,340 on credit to D Rebecca had been entered in error in D
Raymond's account.
(iv) Purchase of goods on credit L Hand Shs.8. 190 entered in the correct accounts in error as
Shs. 8,910.
(v) Cash paid to G Patrick Shs. 640 entered on the debit side of the cash book and the credit
side of G Patricia's account.
(vi) A sale of fittings Shs. 3,200 had been entered in the Sales account.
Cash withdrawn from bank Shs. 2,000 had been entered in the cash column on the
credit side of the cash book, and in the bank column on the debit side.
(viii) Purchase of goods Shs. 11,820 has been entered in error in the furniture and
fittings account
Required:
(vii)
Show the journal entries needed to correct the following errors
(9 marks)