Bilal drew up a trial balance dated 31 December 2024.
He then found these mistakes:
1 Goods withdrawn for Bilal’s personal use, with a cost of $185, had been entered as cash drawings.
2 Motor expenses of $63, paid by bank transfer, had been shown as $36.
3 Bilal’s introduced capital of $2000 had been posted to a bank loan account.
4 A purchase invoice for $84 from Maya had been debited to Moira’s account and credited to the purchases account.
5 Bilal’s private insurance of $130 had been entered as business insurance.
(a)[11]
Prepare the journal entries on page 15 for the correction of errors 1-5. Narratives are not needed.
(b)[5]
Calculate Bilal’s profit for the year once errors 1-5 have been corrected.
(c)[4]
Calculate the balance in the capital account at 31 December 2024.
Worked solution & mark scheme
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