Answer To Accounting Test Question COE No. 1 On Correction Of Errors

November 26th, 2006 Comments off
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Answer to Accounting Test Question COE No.1:

(a) Mr. A’s Journal Entries

Item No

Date

Particulars

Dr ($)

Cr ($)

1

Dec 31

Discount Received A/c

365

Discount Allowed A/c

365

Suspense A/c

730

Being correction of Discount Allowed $365 wrongly credited to Discount Received Account

2

Dec 31

Mr TEY Account

210

Mr XY Account

210

Being correction of payments $2,100 by Mr XY wrongly credited to Mr TEY account

3

Dec 31

Drawings Account

3,600

Wages Accoount

2,640

Purchases Account

960

Being correction of error on Wages paid $2,640 and material used $960 for own store)

4

Dec 31

Suspense Account

9

Postage Account

9

Being correction of Postage overstated $9 in Postage Account)

5

Dec 31

Fittings Account

1,800

Purchases Account

1,800

Being correction of new fittings purchased wrongly debited to Purchases account

6

Dec 31

Drawings Account

3,600

Wages Accoount

2,640

Purchases Account

960

Being correction of error on Wages paid $2,640 and material used $960 for own store)

6

Dec 31

Electricity Account

96

Suspense Account

96

Being correction of electricity paid $96 not posted to that account

(b) Suspense Account

2005

$

2005

$

Dec 31

Difference as per Trial Balance

817

Dec 31

Discount allowed

365

Postage

9

Discount received

365

Electricity

96

826

826

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Financial Accounting

 
 

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