3.2. Correction of errors
A subsection of Accounting, 7707, through 3. Verification of accounting records
Listing 10 of 19 questions
Eshe is a trader. She has prepared a trial balance at 31 March 2023. The totals did not agree and the difference was placed in a suspense account. Eshe later discovered the errors shown in the following table. REQUIRED Complete the table to show the entries required to correct each error. The first one has been completed as an example. Error Entries required to correct the error Debit Credit Account $ Account $ A payment for rent, $300, had been debited to the insurance account. Credit sales to Raymond of $105 had been debited to the sales account and credited to Raymond’s account. Eshe’s total drawings from the bank for her own use, $9500, had been debited to the cash account. A purchases invoice from Danika for $137 had been recorded in her account and in the purchases journal as $173. Returns inwards, $44, had not been recorded in the returns inwards account. The motor expenses account had been overcast by $100. Rent paid Insurance Prepare the suspense account. Include the balancing figure as the original difference on the trial balance. Eshe Suspense account Date Details $ Date Details $ Eshe’s capital at 1 April 2022 was $31 000. Her draft profit for the year ended 31 March 2023 before correction of the errors was $15 600. REQUIRED Calculate Eshe’s capital at 31 March 2023 after the errors have been corrected.
7707_s23_qp_21
THEORY
2023
Paper 2, Variant 1
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Questions Discovered
19