3. The following errors were made: a. GH¢87 cash paid for stationery was entered in the Stationery Account and the Cash Account as GH¢97. b. GH¢430 paid for repairs for machinery was debited to Machinery Account. c. Sales Account and Purchases Account were overcast by GH¢350 each. d. Commission received GH¢1,580 was wrongly debited to the Commission Revenue Account and credited to the Cash Account. What entries should be made to correct these errors?
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- An error was made in posting of cash sales for $2 000. The both accounts were understated by the amount. What type of error is this? Error of Principle Error of Original Entry Error of Commission Reversal of EntriesRequired: Post the rectification entry for each of the above errors. Question five: Rectify the following errors: 1. Other income received of Tshs880,000 was correctly recorded in the cash book, but was debited to the other income account. 2. Cash paid for wages of Tshs9.6 million was posted to the wages account as Tshs6.9 million. 3. The purchases day book was overcast by Tshs2 million. 4. The sales day book was undercast by Tshs6 million. 5. The cash book credit side was undercast by Tshsl.3 million. 6. The prepaid expense account debit side was undercast by Tshs0.6 million. 7. A sale of Tshsl.5 million was fully credited to the sales account. However, sales tax of Tshs0.5 million was included in it. 8. A building purchased for Tshs60 million was entered in the building account as Tshs50 million. The company charges 2% depreciation. 9. Repairs to machinery of Tshs5 million were capitalised and a depreciation of 5% was charged on it. Question six: How much will appear in the suspense…4. The debit side of a company’s trial balance totals $800 more than the credit side. Which one of the following errors would fully account for the difference? A $400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account. B Discount received $400 has been debited to discount allowed account C A receipt of $800 for commission receivable has been omitted from the records D The petty cash balance of $800 has been omitted from the trial balance. 7. Which of the following items appear on the same side of the trial balance? (CHOOSE A,B,C or D) A Drawings and accruals B Freight out and prepayments C Freight in and rental income D Opening inventory and purchase returns Answer questions and explain why did you pick this answer
- Rectify the following errors : Cash sales $ 16,000 (i) were not posted to sales account. (ii) were posted as $ 6,000 in sales account. (iii) were posted to commission account.The debit and credit totals are not equal as a result of the following errors:a. The cash entered on the trial balance was understated by $6,000.b. A cash receipt of $5,600 was posted as a debit to Cash of $6,500.c. A debit of $11,000 to Accounts Receivable was not posted.d. A return of $150 of defective supplies was erroneously posted as a $1,500 credit to Supplies.e. An insurance policy acquired at a cost of $1,200 was posted as a credit to Prepaid Insurance.f. The balance of Notes Payable was understated by $20,000.g. A credit of $4,800 in Accounts Payable was overlooked when determining the balance of the account.h. A debit of $7,000 for a withdrawal by the owner was posted as a credit to Terry Colby, Capital.i. The balance of $58,100 in Rent Expense was entered as $51,800 in the trial balance.j. Gas, Electricity, and Water Expense, with a balance of $24,150, was omitted from the trial balance.Instructions1. Prepare a corrected unadjusted trial balance as of August 31, 2014.2. Does…The Colby Group has the following unadjusted trial balance as of August 31, 2019: The Colby Group Unadjusted Trial Balance August 31, 2019 Credit Balances Debit Balances Cash 17,300 37,000 7,400 Accounts Receivable Supplies Prepaid Insurance Equipment.. Notes Payable.. Accounts Payable Terry Colby, Capital.. Terry Colby, Drawing 1,900 196,000 97,600 26,000 129,150 56,000 Fees Earned.. 454,450 Wages Expense Rent Expense Advertising Expense.. Miscellaneous Expense 270,000 51,800 25,200 5,100 667,700 707,200
- Which of the following errors would not affect net income?A. Post-dated checks are classified as cash upon receipt from customersB. Purchases on account are unrecorded because the goods are still in transit : butthe goods were included in inventoryC. Depreciation expense was recorded twice for the same yearD. The client charged an ordinary repair as part of equipment cost.In a cash receipts journal, both the Accounts Receivable Credit column and the Cash Debit column were mistakenly underadded by 700. How will this error be discovered?what is the solution for The credit total of a trial balance exceeds the debit total by P350. In investigating the cause of the difference, the following errors were determined:a credit to accounts receivable of P550 was not posted;a P5,000 debit to be made to the Purchases account was debited to Accounts payable instead;a P3,000 credit to be made to the Sales account was credited to the Accounts receivable account instead;the Interest payable account balance of P4,500 was included in the trial balance as P5,400.The correct balance of the trial balance is
- The credit total of a trial balance exceeds the debit total by P350. In investigating the causeof the difference, the following errors were determined: a credit to accounts receivable ofP550 was not posted; a P5,000 debit to be made to the Purchases account was debited toAccounts payable instead; a P3,000 credit to be made to the Sales account was credited tothe Accounts receivable account instead; the Interest payable account balance of P4,500was included in the trial balance as P5,400. The correct balance of the trial balance is32.3A Show the journal entries needed to correct the following errors: (a) Purchases £1,410 on credit from A Ray had been entered in B Roy's account. (b) A cheque of £94 paid for printing had been entered in the cash column of the cash book instead of in the bank column. (c) Sale of goods £734 on credit to D Rolls had been entered in error in D Rollo's account. (d) Purchase of goods on credit L Hand £819 entered in the correct accounts in error as £891. (e) Cash paid to G Boyd f64 entered on the debit side of the cash book and the credit side of G Boyd's account. (f) A sale of fittings f320 had been entered in the Sales account. (g) Cash withdrawn from bank £200 had been entered in the cash column on the credit side of the cash book, and in the bank column on the debit side. (h) Purchase of goods £1,182 has been entered in error in the Furnishings account.The trial balance of Kelvin does not balance. Which TWO of the following errors could explain this, assuming that Kelvin maintains control accounts for its receivables and payables within the double entry system? (1) The sales day book was undercast by $100.(2) Discounts received were credited to sales revenue account.(3) An opening accrual was omitted from the rent account.(4) The debit side of the cash account was undercast. A (1) and (2)B (2) and (3)C (3) and (4)D (1) and (4) Please give solution with proper explanation