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Account 2.0 A sale of $151 to Mr. A had been posted correctly to the personal account but entered in the Sales Day Book as $115 3.0 A cheque received from Mr. B entered correctly in the Cash Book as $766 had been posted to the company's account as $760. 4.0 The purchase of new machinery for $1,200 had been posted to the Stock Account. 5.0 A sale of $265 to Mr. C had not been posted to his account. 6.0 Bank interest charges of $720 were correctly entered in the Cash Book but the other side of the double entry had been omitted. Required: Prepare Journal entries to correct the above errors

Account 2.0 A sale of $151 to Mr. A had been posted correctly to the personal account but entered in the Sales Day Book as $115 3.0 A cheque received from Mr. B entered correctly in the Cash Book as $766 had been posted to the company's account as $760. 4.0 The purchase of new machinery for $1,200 had been posted to the Stock Account. 5.0 A sale of $265 to Mr. C had not been posted to his account. 6.0 Bank interest charges of $720 were correctly entered in the Cash Book but the other side of the double entry had been omitted. Required: Prepare Journal entries to correct the above errors

FINANCIAL ACCOUNTING
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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Please Introduction and show work without plagiarism please 

When the trial balance of XYZ Ltd as at 30/9/08 was prepared, a difference was found. A Suspense Account was created in order to achieve the balance: Examination of the books showed the following: 1.0 Discount allowed of $76 had been credited to the Discount Received Account 2.0 A sale of $151 to Mr. A had been posted correctly to the personal account but entered in the Sales Day Book as $115 3.0 A cheque received from Mr. B entered correctly in the Cash Book as $766 had been posted to the company's account as $760. 4.0 The purchase of new machinery for $1,200 had been posted to the Stock Account. 5.0 A sale of $265 to Mr. C had not been posted to his account. 6.0 Bank interest charges of $720 were correctly entered in the Cash Book but the other side of the double entry had been omitted. Required: Prepare Journal entries to correct the above errors.
Transcribed Image Text:When the trial balance of XYZ Ltd as at 30/9/08 was prepared, a difference was found. A Suspense Account was created in order to achieve the balance: Examination of the books showed the following: 1.0 Discount allowed of $76 had been credited to the Discount Received Account 2.0 A sale of $151 to Mr. A had been posted correctly to the personal account but entered in the Sales Day Book as $115 3.0 A cheque received from Mr. B entered correctly in the Cash Book as $766 had been posted to the company's account as $760. 4.0 The purchase of new machinery for $1,200 had been posted to the Stock Account. 5.0 A sale of $265 to Mr. C had not been posted to his account. 6.0 Bank interest charges of $720 were correctly entered in the Cash Book but the other side of the double entry had been omitted. Required: Prepare Journal entries to correct the above errors.
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