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The draft trial balance of Regent Ltd as at 31 May 20X9 agreed. The business proceeded with the preparation of the draft final financial statements and these showed a profit of £442,910. However, a subsequent audit revealed the following errors: 1. Bank charges of £266 had been omitted from the cash book. 2. The purchases journal had been overcast by £1,900. 3. The sales journal had been undercast by £475. 4. An invoice for £143 received from Alpha Ltd had been entered into the purchases journal as £413. (This is quite independent of the error made in the purchases journal referred to above.) 5. It is now considered prudent to write off the balance of £418 on P. Shadey's account as bad. 6. An invoice from Caring Garages Ltd for £2,800 in respect of servicing Regent Ltd's motor vehicles had been posted to the debit of motor vehicles account. 7. Depreciation of 10 per cent per annum has been provided for on motor vehicles inclusive of the £2,800 invoice referred to in point 6 above. Regent Ltd maintains control accounts for credit sales and credit purchases in its general ledger. Individual accounts for credit customers and credit suppliers are maintained on a memorandum basis only. Required: a. Prepare journal entries to show how the above errors would be corrected. View transaction list Journal entry worksheet A B C D E F G Record the bank charges of £266 which had been omitted from the cash book. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry

The draft trial balance of Regent Ltd as at 31 May 20X9 agreed. The business proceeded with the preparation of the draft final financial statements and these showed a profit of £442,910. However, a subsequent audit revealed the following errors: 1. Bank charges of £266 had been omitted from the cash book. 2. The purchases journal had been overcast by £1,900. 3. The sales journal had been undercast by £475. 4. An invoice for £143 received from Alpha Ltd had been entered into the purchases journal as £413. (This is quite independent of the error made in the purchases journal referred to above.) 5. It is now considered prudent to write off the balance of £418 on P. Shadey's account as bad. 6. An invoice from Caring Garages Ltd for £2,800 in respect of servicing Regent Ltd's motor vehicles had been posted to the debit of motor vehicles account. 7. Depreciation of 10 per cent per annum has been provided for on motor vehicles inclusive of the £2,800 invoice referred to in point 6 above. Regent Ltd maintains control accounts for credit sales and credit purchases in its general ledger. Individual accounts for credit customers and credit suppliers are maintained on a memorandum basis only. Required: a. Prepare journal entries to show how the above errors would be corrected. View transaction list Journal entry worksheet A B C D E F G Record the bank charges of £266 which had been omitted from the cash book. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry

CONCEPTS IN FED.TAX.,2020-W/ACCESS
CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 43P
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The draft trial balance of Regent Ltd as at 31 May 20X9 agreed. The business proceeded with the preparation of the draft final financial statements and these showed a profit of £442,910. However, a subsequent audit revealed the following errors: 1. Bank charges of £266 had been omitted from the cash book. 2. The purchases journal had been overcast by £1,900. 3. The sales journal had been undercast by £475. 4. An invoice for £143 received from Alpha Ltd had been entered into the purchases journal as £413. (This is quite independent of the error made in the purchases journal referred to above.) 5. It is now considered prudent to write off the balance of £418 on P. Shadey's account as bad. 6. An invoice from Caring Garages Ltd for £2,800 in respect of servicing Regent Ltd's motor vehicles had been posted to the debit of motor vehicles account. 7. Depreciation of 10 per cent per annum has been provided for on motor vehicles inclusive of the £2,800 invoice referred to in point 6 above. Regent Ltd maintains control accounts for credit sales and credit purchases in its general ledger. Individual accounts for credit customers and credit suppliers are maintained on a memorandum basis only. Required: a. Prepare journal entries to show how the above errors would be corrected. View transaction list Journal entry worksheet A B C D E F G Record the bank charges of £266 which had been omitted from the cash book. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry
Transcribed Image Text:The draft trial balance of Regent Ltd as at 31 May 20X9 agreed. The business proceeded with the preparation of the draft final financial statements and these showed a profit of £442,910. However, a subsequent audit revealed the following errors: 1. Bank charges of £266 had been omitted from the cash book. 2. The purchases journal had been overcast by £1,900. 3. The sales journal had been undercast by £475. 4. An invoice for £143 received from Alpha Ltd had been entered into the purchases journal as £413. (This is quite independent of the error made in the purchases journal referred to above.) 5. It is now considered prudent to write off the balance of £418 on P. Shadey's account as bad. 6. An invoice from Caring Garages Ltd for £2,800 in respect of servicing Regent Ltd's motor vehicles had been posted to the debit of motor vehicles account. 7. Depreciation of 10 per cent per annum has been provided for on motor vehicles inclusive of the £2,800 invoice referred to in point 6 above. Regent Ltd maintains control accounts for credit sales and credit purchases in its general ledger. Individual accounts for credit customers and credit suppliers are maintained on a memorandum basis only. Required: a. Prepare journal entries to show how the above errors would be corrected. View transaction list Journal entry worksheet A B C D E F G Record the bank charges of £266 which had been omitted from the cash book. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry
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