Homework Help is Here – Start Your Trial Now!
Business
Accounting
The Trial Balance of a concern has agreed but the following mistakes were discovered after the  preparation of final Accounts.  (a) No adjustment entry was passed for an amount of $2,000 relating to outstanding rent.  (b) Purchase book was overcast by $1,000. (c) $4,000 depreciation of Machinery has been omitted to be recorded in the book.  (d) $600

The Trial Balance of a concern has agreed but the following mistakes were discovered after the  preparation of final Accounts.  (a) No adjustment entry was passed for an amount of $2,000 relating to outstanding rent.  (b) Purchase book was overcast by $1,000. (c) $4,000 depreciation of Machinery has been omitted to be recorded in the book.  (d) $600

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter2: Analyzing Transactions
Section: Chapter Questions
Problem 5PB: Tech Support Services has the following unadjusted trial balance as of January 31, 2019: The debit...
See similar textbooks
icon
Related questions
Question

The Trial Balance of a concern has agreed but the following mistakes were discovered after the  preparation of final Accounts. 

(a) No adjustment entry was passed for an amount of $2,000 relating to outstanding rent. 
(b) Purchase book was overcast by $1,000.
(c) $4,000 depreciation of Machinery has been omitted to be recorded in the book. 
(d) $600 paid for purchase of stationary has been debited to Purchase A/c.
(e) Sales books was overcast by $1,000.
(f) $5,000 received in respect of Book Debt had been credited to Sales A/c. 

Show the effect of the above errors in Profit and Loss Account & Balance Sheet.

Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Changes and Error Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q…
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS