32.2 Show the journal entries necessary to correct the following errors: (a) A sale of goods £412 to T More had been entered in T Mone's account. (b) The purchase of a machine on credit from J Frank for £619 had been completely omitted from our books. (c) The purchase of a computer for £550 had been entered in error in the Office Expenses account. (d) A sale of £120 to B Wood had been entered in the books, both debit and credit, as £102. (e) Commission received £164 had been entered in error in the Sales account. (f) A receipt of cash from T Blair £68 had been entered on the credit side of the cash book and the debit side of T Blair's account. (g) A purchase of goods £372 had been entered in error on the debit side of the Drawings account. (h) Discounts Allowed £48 had been entered in error on the debit side of the Discounts Received account.
32.2 Show the journal entries necessary to correct the following errors: (a) A sale of goods £412 to T More had been entered in T Mone's account. (b) The purchase of a machine on credit from J Frank for £619 had been completely omitted from our books. (c) The purchase of a computer for £550 had been entered in error in the Office Expenses account. (d) A sale of £120 to B Wood had been entered in the books, both debit and credit, as £102. (e) Commission received £164 had been entered in error in the Sales account. (f) A receipt of cash from T Blair £68 had been entered on the credit side of the cash book and the debit side of T Blair's account. (g) A purchase of goods £372 had been entered in error on the debit side of the Drawings account. (h) Discounts Allowed £48 had been entered in error on the debit side of the Discounts Received account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:32.2 Show the journal entries necessary to correct the following errors:
(a) A sale of goods £412 to T More had been entered in T Mone's account.
(b) The purchase of a machine on credit from J Frank for £619 had been completely omitted from
our books.
(c) The purchase of a computer for £550 had been entered in error in the Office Expenses
account.
(d) A sale of £120 to B Wood had been entered in the books, both debit and credit, as £102.
(e) Commission received £164 had been entered in error in the Sales account.
(f) A receipt of cash from T Blair £68 had been entered on the credit side of the cash book and
the debit side of T Blair's account.
(g) A purchase of goods £372 had been entered in error on the debit side of the Drawings
account.
(h) Discounts Allowed £48 had been entered in error on the debit side of the Discounts Received
account.
32.3A 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.
Purchase of goods on credit L Hand £819 entered in the correct accounts in error as £891.
(d)
(e)
Cash paid to G Boyd £64 entered on the debit side of the cash book and the credit side of
G Boyd's account.
(f) A sale of fittings £320 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.
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