QUESTION 6 (OCT2016)Sherry, an account clerk at Akasia Enterprise has beenasked to prepare ledger and trial balance as at 28 February2016. The trial balance did not balance and uponinvestigation, the following errors were discovered:1. A payment of RM300 for electricity bills by cash hadnot been recorded at all.2. A repair to motor vehicle costing RM700 had beenposted to motor vehicle account.3. Credit purchases of RM5,000 from Ahmad had beenrecorded as RM500 in the books of prime entry.Required:i. Identify the type of errors made by Sherry in recordingeach of the above transactions.ii. Show the journal entries to correct each of the aboveerrors. Narration is not required.

Error means recording or classifying or summarizing the accounting transactions wrongly or…

Answered: i. Identify the type of errors made by…

i. Identify the type of errors made by Sherry in recording each of the above transactions. ii. Show the journal entries to correct each of the above errors. Narration is not required.

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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