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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4. What happens when you complete the Manage Bounced Cheque form? a. The invoice will be marked unpaid, and the process ends. b. An invoice will be created for the bank fee that you pass along to the customer, and the process ends. c. The invoice total is increased by the amount of the bank fee, and the process ends. d. The invoice will be marked unpaid, the fees for the invoice and the bank charge will be deducted from the business's bank account, and an invoice will be created for the bank fee that you pass along to the customer. PLEASE KINDLY EXPLAIN YOUR CHOICE OF ANSWER.
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9 - Which of the following should be done if there is a shortage of cash and the reason cannot be found that day ? a) It is written to the creditor side of Account 197 Counting and Receipt Deficiencies B) It is written to the creditor side of Account 397 Counting and Receipt Deficiencies NS) 659 Debited for other ordinary expenses D) It is written to the debtor side of the 197 Counting and Receipt Deficiencies Account TO) It is written to the debtor side of Account 397 Counting and Receipt Deficiencies
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