Mosi trades as a trader. At 30 April 2022, the totals of his trial balance were not equal, so the difference was entered in a suspense account.
Mosi subsequently found these errors:
1 Commission received, $96$, had been posted to the discount received account on the debit side. The bank account entry was posted correctly.
2 The April 2022 sales journal total of $1258$ was entered in the sales account as $2185$.
3 A cheque payment for motor expenses of $77$ was left out of the book-keeping records.
4 An electronic transfer payment of $135$ was written into the petty cash book instead.
5 A supplier invoice from Tracey for $160$ had been credited to Stacey’s account.
(a)[11]
Prepare the journal entries that correct errors 1-5. Narratives are not needed.
(b)[4]
Prepare the suspense account. Use the original trial balance difference as the balancing figure.
(c)[5]
Calculate Mosi’s corrected profit for the year ended 30 April 2022.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.