estion 3 a. On 31st December 2017 Omega extracted a trial balance and found that it did not balance. The debit column totaled $510,450, and the credit columns totaled $505,021. Omega entered the difference in suspense account. Upon investigation he found that the following errors had been made. (i) A purchase for cash of $750 had been correctly entered into the cash account but had not been entered into the purchase account. Ervovs & mission ii) Discount received of $375 had been posted to the debit side of the discounts received account. Errors el Entry Reversedl iii) A purchase of goods for sale of $15,750 paid in cash had been entered in the purchase account as $18,750. (18750 - 3000) 1575 Tra iv) The sales returns day book had been under cast by $1,200.Costing errors v) vi) The sales day book had been overcast by $1,500. Compensating Errors Interest received for the year of $2,625. Had been entered as a debit entry in the interest payable account. Evvors d Omission. vii) Telephone expenses of $258 paid by cheque had been posted to the debit side of the telephone expense account as $285. (285-258 = 27) uired: Transposi 1. Identify the types of errors- Units Y Session u 2. State the effect of each error on Omega's Profit for the period.
estion 3 a. On 31st December 2017 Omega extracted a trial balance and found that it did not balance. The debit column totaled $510,450, and the credit columns totaled $505,021. Omega entered the difference in suspense account. Upon investigation he found that the following errors had been made. (i) A purchase for cash of $750 had been correctly entered into the cash account but had not been entered into the purchase account. Ervovs & mission ii) Discount received of $375 had been posted to the debit side of the discounts received account. Errors el Entry Reversedl iii) A purchase of goods for sale of $15,750 paid in cash had been entered in the purchase account as $18,750. (18750 - 3000) 1575 Tra iv) The sales returns day book had been under cast by $1,200.Costing errors v) vi) The sales day book had been overcast by $1,500. Compensating Errors Interest received for the year of $2,625. Had been entered as a debit entry in the interest payable account. Evvors d Omission. vii) Telephone expenses of $258 paid by cheque had been posted to the debit side of the telephone expense account as $285. (285-258 = 27) uired: Transposi 1. Identify the types of errors- Units Y Session u 2. State the effect of each error on Omega's Profit for the period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 3
a. On 31st December 2017 Omega extracted a trial balance and found that it did not
balance. The debit column totaled $510,450, and the credit columns totaled $505,021.
Omega entered the difference in suspense account. Upon investigation he found that the
following errors had been made.
(i)
A purchase for cash of $750 had been correctly entered into the cash account but
had not been entered into the purchase account. Errors d mission
(ii)
Discount received of $375 had been posted to the debit side of the discounts received
account. Errors el Entry Reversedl
(iii)
A purchase of goods for sale of $15,750 paid in cash had been entered in the
purchase account as $18,750. (18750
3000) TransF
1575 =
-
(iv)
(v)
The sales returns day book had been under cast by $1,200.Costing errors"
The sales day book had been overcast by $1,500. Compensating Errors
Interest received for the year of $2,625. Had been entered as a debit entry in the
interest payable account. Evvors d Omission.
(vi)
(vii)
Telephone expenses of $258 paid by cheque had been posted to the debit side of the
telephone expense account as $285, (285-258 = 27) Transposition
equired:
1. Identify the types of errors Units Y Session u
2. State the effect of each error on Omega's Profit for the period.
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