Correction of errors
The trial balance at 31 December, 2016 showed a difference of shs. 77,000, being a storage on the debit side. A suspence account is opened and the difference of shs 77,000 is entered on the debit side of the account.
On 28th February 2017 all errors from the previous year were found as follows:
Required:
Prepare the Journal entry to correct the following errors:
Mr. Kimti has presented you with a trial balance showing the difference which he then carried to suspense account.
Upon investigation, you find the following errors:
Required:
The trial balance of Tunda Chungu as at 31 December, 2016 failed to agree. The payments side exceeded to receipts side by T.shs 20,000. After scrutiny, the following errors were discovered:
Required:
Show journal entries to correct the above errors
After the extraction of the balances from the books of Bland, the totals of the trial balance failed to agree. The following items have subsequently been discovered.
Required:
Statement of Financial Position of Mayungu as a 31 December 2020 | |||
---|---|---|---|
TZS | TZS | ||
Fixtures and fitting | 12,500,000 | Capital | 10,000,000 |
Stock | 5,000,000 | Net profit for year | 8,650,000 |
Debtors | 2,100,000 | 18,650,000 | |
Cash | 50,000 | Drawings | (3,930,000) |
14,720,000 | |||
Creditors | 4,350,000 | ||
Suspense account | 580,000 | ||
19,650,000 | 19,650,000 |
When the above statement was prepared there was still a difference in the trial balance, and it was necessary to open a suspense account for the amount show.
Subsequently the following errors have been discovered:
Required:
An inexperienced book-keeper has drawn up a trial balance for the year ended 30 June 2017:
Details | DR. TZS | CR. TZS |
---|---|---|
Provision for doubtful debts | 200 | |
Bank overdraft | 1,654 | |
Capital | 4,591 | |
Creditors | 1,637 | |
Debtors | 2,983 | |
Discount received | 252 | |
Discount allowed | 733 | |
Drawings | 1,200 | |
Office furniture | 2,155 | |
General expenses | 829 | |
Purchases | 10,923 | |
Returns inwards | 330 | |
Rent and rates | 314 | |
Salaries | 2,520 | |
Sales | 16,882 | |
Stock | 2,418 | |
Provision for depreciation of furniture | 364 | |
24,938 | 25,002 |
Further investigation of the suspense account, ascertained above, reveals the following errors:
Required:
We have to re-arrange the Trial Balance in order to arrive at a true difference which is to be sent to Suspense account.
Press then go back to the Trial Balance to select correct side of each account.
NOTE: Red color stands for "Incorrect".
At the end of the financial year the totals of the trial balance of Kaswamila failed to agree and the difference, shs 213,000, was credited to a suspense account pending investigation.
Subsequently, the following errors were discovered:
Required:
Post the appropriate correcting entries in the suspense account in order to eliminate the balance.