Question twenty three: Write out the journal entries which would correct these errors: (a) A business receives an invoice for shs.250 from a supplier which was omitted from the books entirely. (b) Repairs worth shs.150 were incorrectly debited to the non-current asset (machinery) account instead of the repairs account. (c) The bookkeeper of a business reduces cash sales by shs.280 because he was not sure what the shs.280 represented. In fact, it was a withdrawal on account of profit. (d) Telephone expenses of shs.540 were incorrectly debited to the electricity account. (e) A page in the sales day book has been added up to shs.28,425 instead of shs.28,825.

Question twenty three: Write out the journal entries which would correct these errors: (a) A business receives an invoice for shs.250 from a supplier which was omitted from the books entirely. (b) Repairs worth shs.150 were incorrectly debited to the non-current asset (machinery) account instead of the repairs account. (c) The bookkeeper of a business reduces cash sales by shs.280 because he was not sure what the shs.280 represented. In fact, it was a withdrawal on account of profit. (d) Telephone expenses of shs.540 were incorrectly debited to the electricity account. (e) A page in the sales day book has been added up to shs.28,425 instead of shs.28,825.

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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