5. You have extracted a trial balance on 31 December 2006 which failed to agree by GH¢350, a shortage on the debit side of the trial balance. A suspense account was opened for the difference. The following errors were later found: a. The purchases daybook had been undercast by GH¢200. b. The insurance account had been undercast by GH¢50. c. Sale of equipment of GH¢400 had been credited in error to the Sales account. d. Sales account had been overcast by GH¢175 e. Discounts received had been undercast by GH¢75

5. You have extracted a trial balance on 31 December 2006 which failed to agree by GH¢350, a shortage on the debit side of the trial balance. A suspense account was opened for the difference. The following errors were later found: a. The purchases daybook had been undercast by GH¢200. b. The insurance account had been undercast by GH¢50. c. Sale of equipment of GH¢400 had been credited in error to the Sales account. d. Sales account had been overcast by GH¢175 e. Discounts received had been undercast by GH¢75

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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