Maurice Tutor

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Category > Management Posted 11 Jul 2017 My Price 11.00

old-fashioned business

Chi Knitwear Ltd is an old-fashioned business with a handwritten set of books. A trial balance is extracted at the end of each month, and a statement of profit or loss and a statement of financial position are computed. This month, however, the trial balance will not balance, the credits exceeding debits by £1,536.

You are asked to help and after inspection of the ledgers discover the following errors.

(i) A balance of £87 on a debtor's account has been omitted from the schedule of debtors, the total of which was entered as accounts receivable in the trial balance.

(ii) A small piece of machinery purchased for £1,200 had been written off to repairs.

(iii) The receipts side of the cash book had been undercast by £720.

(iv) The total of one page of the sales day book had been carried forward as £8,154, whereas the correct amount was £8,514.

(v) A credit note for £179 received from a supplier had been posted to the wrong side of his account.

(vi) An electricity bill in the sum of £152, not yet accrued for, is discovered in a filing tray.

(vii) Mr Smith, whose past debts to the company had been the subject of a provision, at last paid £731 to clear his account. His personal account has been credited but the cheque has not yet passed through the cash book

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Maurice Tutor
(5)
Status NEW Posted 11 Jul 2017 04:07 PM My Price 11.00

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