Akil drew up his trial balance on 29 February 2024. The debit total was $83640, whereas the credit total was $84025.
He then found the following errors:
1 The January 2024 sales journal total of $3416 had been entered on the credit side of the sales returns account.
2 A direct debit for insurance, $115, had been posted to both the bank account and the insurance account.
3 Discount allowed, $47, had been credited to discount received.
4 A payment for office equipment, $52, had been posted to stationery instead.
5 The purchases journal for February had been overcast by $90.
(a(i))[1]
State which business document records the date on which the direct debit for insurance was paid.
(a(ii))[1]
State which one of errors $1$ to $5$ above is an error of principle.
(b)[7]
Prepare the journal entries required to correct errors 1 to 3 only. Narratives are not needed.
(c(i))[1]
State why a balance could still remain on the suspense account after errors 1 to 5 have been corrected.
(c(ii))[5]
Prepare the suspense account. Carry down any remaining balance at 1 March 2024.
(d)[5]
Calculate Akil’s profit once items 1 to 5 have been corrected.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The bank statement” …