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The trial balance of Amanda ltd as at 30 April 2018 did not balance On investigation the following errors were discovered 1A loan of Sh.2000000 from one of the directors has been correctly

The trial balance of Amanda ltd as at 30 April 2018 did not balance. On investigation the following errors were discovered, 1.A loan of Sh.2,000,000 from one of the directors has been correctly entered in the cashbook but posted to the wrong side of the loan account. 2.The purchase of a motor vehicle on credit for sh.2,860,000 has been recorded by debiting the suppliers account and crediting the motor expenses account. 3.A cheque for sh.80,000 from Ogola a customer to whom goods are regularly supplied on credit was correctly entered in the cashbook but was posted to the credit of bad debts recovered account in the mistaken belief that it was receipt from Agola a customer whose debt had been written off three years earlier. 4.In reconciling the company-s cash book with the bank statement, it was found that bank charges of shs 38,000 had not been entered in the company’s records. 5.The totals of the cash discount columns in the cashbook for the months of April 2018 had not been posted to the respective discount accounts. The figures were Discount allowed 184,000 Discount received 397,000 6. The company had purchased some plant on 1st March 2017 for sh: 1,600,000.The payment was correctly entered in the cashbook but was debited to the plant repairs account. Depreciation on such plant is provided for at the rate of 20% per annum of cost. Required i) Journal entries with narrations to correct the above errors ii) Suspense account showing the original difference

May 09 2020 View more View Less

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