Exercise 1- Errors Not Revealed by Trial Balance State which type of error each of the following represents and how to correct these errors: a. Payment of rent has been debited to the bank account and credited to the rent payable account. b. The purchase of a computer has been debited to the office expenses account. c. A supplier's invoice has been omitted from the purchases journal. d. The total of the wages account has been overstated by $1 000/and rent received of $1 000 has been posted twice to the rent received account/ e. Discount allowed to Asma has been credited to Amna's account./ f. A purchase of goods for $960 has been entered in the purchases journal as $690. g. A refund of an insurance premium, $60, had not been recorded in any of the books. h. A purchase of office stationery, $220, had been debited in error to purchases account. i. Repairs to a machine, $3 500, had been posted to machinery account. j. Good returned to supplier had been credited to supplier's account and debited to purchases returns account. k. Goods returned by customer $150 were entered in sales returns journal as $105. 1. Both returns outwards and return inwards were overcast by $150.

Exercise 1- Errors Not Revealed by Trial Balance State which type of error each of the following represents and how to correct these errors: a. Payment of rent has been debited to the bank account and credited to the rent payable account. b. The purchase of a computer has been debited to the office expenses account. c. A supplier's invoice has been omitted from the purchases journal. d. The total of the wages account has been overstated by $1 000/and rent received of $1 000 has been posted twice to the rent received account/ e. Discount allowed to Asma has been credited to Amna's account./ f. A purchase of goods for $960 has been entered in the purchases journal as $690. g. A refund of an insurance premium, $60, had not been recorded in any of the books. h. A purchase of office stationery, $220, had been debited in error to purchases account. i. Repairs to a machine, $3 500, had been posted to machinery account. j. Good returned to supplier had been credited to supplier's account and debited to purchases returns account. k. Goods returned by customer $150 were entered in sales returns journal as $105. 1. Both returns outwards and return inwards were overcast by $150.

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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