Rachel works as a trader. When Rachel prepared the trial balance on 30 September 2023, the totals failed to agree, so the difference was entered into a suspense account.
Rachel then found the errors listed in the table below.
(a)[9]
Complete the table below to show the journal entries needed to correct each error. The first line has already been done as an example.
(b)[5]
Prepare the suspense account. Show the balancing amount as the original difference on the trial balance.
(c)[5]
Calculate Rachel’s profit for the year ended 30 September 2023 after the errors in the table have been corrected.
(d)[1]
State why financial statements may still be reliable even when errors exist.
Worked solution & mark scheme
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