a) renders the financial statements not valid. in accounting records is irregularity i) List five (5) accounting errors that do not affect the agreement of the trial balance. ii) List five (5) accounting errors that affect the agreement of the trial balance. b) Explain briefly with illustrations the following types of crrors: I) Error of commission V) Compensating error Error of II) Error of principle original entry III) Error of transposition complete reversal of entries IV) Error of omission VI) VII) Error of c) The trial balance of Yeme Enterprise as at 31" March, 2018 has an excess of credits over debits of GH¢5,000. Further investigations revealed the following errors: (1) The total sales day book for March 2018 had been overstated by GH4,500. (2) Discount received of GH¢2,500 in January 2018 had been posted to the debit of the discount allowed account. (3) Payment by cheque to a creditor for GH¢3,150 had been entered in the cash book as GH¢1,350. (4) Wages of GH¢4,200 paid in the month of March had not been posted from the cash book. (5) In March 2012, purchases of new equipment amounting to GH¢10,000 had been debited to the purchases account. (6) A remittance of GH¢2,700 received from a credit customer in March 2018, had been credited to the sales account. (7) The proprietor of Yeme Enterprise withdrew a cheque of GH¢1,400 for his personal use. The bank account and the drawings account were both credited. (8) A credit note for GH¢200 had been entered as if it were an invoice. (9) GH¢300 insurance prepaid at 31" March, 2017 had not been brought down as an opening balance. (10) At 31 March 2018, electricity of GH¢500 paid in advance had not becen allowed for in the electricity account. Required: Pass journal entries to correct each of the errors discovered.
a) renders the financial statements not valid. in accounting records is irregularity i) List five (5) accounting errors that do not affect the agreement of the trial balance. ii) List five (5) accounting errors that affect the agreement of the trial balance. b) Explain briefly with illustrations the following types of crrors: I) Error of commission V) Compensating error Error of II) Error of principle original entry III) Error of transposition complete reversal of entries IV) Error of omission VI) VII) Error of c) The trial balance of Yeme Enterprise as at 31" March, 2018 has an excess of credits over debits of GH¢5,000. Further investigations revealed the following errors: (1) The total sales day book for March 2018 had been overstated by GH4,500. (2) Discount received of GH¢2,500 in January 2018 had been posted to the debit of the discount allowed account. (3) Payment by cheque to a creditor for GH¢3,150 had been entered in the cash book as GH¢1,350. (4) Wages of GH¢4,200 paid in the month of March had not been posted from the cash book. (5) In March 2012, purchases of new equipment amounting to GH¢10,000 had been debited to the purchases account. (6) A remittance of GH¢2,700 received from a credit customer in March 2018, had been credited to the sales account. (7) The proprietor of Yeme Enterprise withdrew a cheque of GH¢1,400 for his personal use. The bank account and the drawings account were both credited. (8) A credit note for GH¢200 had been entered as if it were an invoice. (9) GH¢300 insurance prepaid at 31" March, 2017 had not been brought down as an opening balance. (10) At 31 March 2018, electricity of GH¢500 paid in advance had not becen allowed for in the electricity account. Required: Pass journal entries to correct each of the errors discovered.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:a) An error in accounting records is an irregularity that
renders the financial statements not valid.
i) List five (5) accounting errors that do not affect the
agreement of the trial balance.
ii) List five (5) accounting errors that affect the
agreement of the trial balance.
b) Explain briefly with illustrations the following types of
errors:
I) Error of commission
V)
Compensating
error
VI)
II) Error of principle
original entry
III) Error of transposition
complete reversal of entries
IV) Error of omission
Error of
VII)
Error of
c) The trial balance of Yeme Enterprise as at 31* March,
2018 has an excess of credits over debits of GH¢5,000.
Further investigations revealed the following errors:
(1) The total sales day book for March 2018 had been
overstated by GH¢4,500.
(2) Discount received of GH¢2,500 in January 2018 had
been posted to the debit of the discount allowed
account.
(3) Payment by cheque to a creditor for GH¢3,150 had
been entered in the cash book as GH¢1,350.
(4) Wages of GH¢4,200 paid in the month of March had
not been posted from the cash book.
(5) In March 2012, purchases of new equipment
amounting to GH¢10,000 had been debited to the
purchases account.
(6) A remittance of GH¢2,700 received from a credit
customer in March 2018, had been credited to the
sales account.
(7) The proprietor of Yeme Enterprise withdrew a cheque
of GH¢1,400 for his personal use. The bank account
and the drawings account were both credited.
(8) A credit note for GH¢200 had been entered as if it
were an invoice.
(9) GH¢300 insurance prepaid at 31" March, 2017 had
not been brought down as an opening balance.
(10) At 31 March 2018, electricity of GH¢500 paid in
advance had not been allowed for in the electricity
account.
Required: Pass journal entries to correct each of the errors
discovered.
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