1. Both returns outwards and return inwards were overcast by $150.Exercise 2- Errors Revealed by Trial BalanceVincent West extracted a trial balance from his ledgers at the close of business on 31 March 20XY. The trialbalance totals failed to agree. (Vincent does not maintain integrated control accounts in his general ledger.)In early April Vincent found the following errors:a. The telephone account had been undercast by $100.b.A cheque paid to Yip Deng for $134 had been posted to the credit of his account.Discount received $63 had been posted to the debit of the discounts allowed as $36.c.d.Commission paid $1 200 had been posted to the credit of the commission received account.Purchase of motor vehicle for $5 400 by cheque was only recorded in the bank account.e.f.Payment for rental amounted to $1 200 by cheque was correctly entered in the bank account, butentered as $2 100 in the rental account.g.A debit balance of $340 in the repairs and maintenance account was incorrectly extracted on the trialbalance as $3 400.REQUIREDDraw up the journal entries to correct these errors (narratives not required). Exercise 3 - Correction of Errors1. After extracting a trial balance, the following errors in the double entry system were discovered:a. Rent $200 has been entered in the rates account.b. The wages account has been undercast by $400.c. Payment made to Tom $146 has entered in the cash book but not in Tom's account.d.Payment for insurance $273 has been debited to cash book and credited to insurance account.e. Bank charges $149 has not been entered in any books of account.f. The sales day book has been undercast by $1 100.g.A car service $550 on owner's private car has been included in motor expenses.h.Carriage inwards $48 has been included in the carriage outwards account.i.Purchases $321 from Beatrice has been debited to her account.j. The sales returns day book has been undercast by $100.k. Drawings $432 has been included in wages as $342.REQUIREDDraw up the journal entries to correct these errors (narratives not required).

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Exercise 2- Errors Revealed by Trial Balance Vincent West extracted a trial balance from his ledgers at the close of business on 31 March 20XY. The trial balance totals failed to agree. (Vincent does not maintain integrated control accounts in his general ledger.) In early April Vincent found the following errors: a. The telephone account had been undercast by $100. b. A cheque paid to Yip Deng for $134 had been posted to the credit of his account. C. Discount received $63 had been posted to the debit of the discounts allowed as $36. d. Commission paid $1 200 had been posted to the credit of the commission received account. Purchase of motor vehicle for $5 400 by cheque was only recorded in the bank account. e. f. Payment for rental amounted to $1 200 by cheque was correctly entered in the bank account, but entered as $2 100 in the rental account. g. A debit balance of $340 in the repairs and maintenance account was incorrectly extracted on the trial balance as $3 400.

Exercise 2- Errors Revealed by Trial Balance Vincent West extracted a trial balance from his ledgers at the close of business on 31 March 20XY. The trial balance totals failed to agree. (Vincent does not maintain integrated control accounts in his general ledger.) In early April Vincent found the following errors: a. The telephone account had been undercast by $100. b. A cheque paid to Yip Deng for $134 had been posted to the credit of his account. C. Discount received $63 had been posted to the debit of the discounts allowed as $36. d. Commission paid $1 200 had been posted to the credit of the commission received account. Purchase of motor vehicle for $5 400 by cheque was only recorded in the bank account. e. f. Payment for rental amounted to $1 200 by cheque was correctly entered in the bank account, but entered as $2 100 in the rental account. g. A debit balance of $340 in the repairs and maintenance account was incorrectly extracted on the trial balance as $3 400.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 19E: After Bunker Hill Assay Services Inc. had completed all postings for March in the current year...

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