Correction of Errors Grace’s trial balance did not balance, the debits exceeded the credits by $1 560. A suspense account was opened for the difference. You are asked to help and after inspection of the ledgers the following errors were found. $2 500 received from sales of old motor vehicle had been entered in the Sales Account. Purchases day book had been overcast by $200. A cheque of $1 900 from A. Brent was accidentally credited to A. Brian’s account. The owner took $2 800 worth of goods out of the business purchases. Bank charges $440 entered in the cash book have not been posted to the bank charges account. A sale of goods to R Christie $4 600 was correctly entered in the Cash Book but entered in the personal account ad $6 400. Required: a. The Net profit originally calculated for the previous year was $56 800. Show your calculation of the correct figure. Please answer ASAP
Correction of Errors Grace’s trial balance did not balance, the debits exceeded the credits by $1 560. A suspense account was opened for the difference. You are asked to help and after inspection of the ledgers the following errors were found. $2 500 received from sales of old motor vehicle had been entered in the Sales Account. Purchases day book had been overcast by $200. A cheque of $1 900 from A. Brent was accidentally credited to A. Brian’s account. The owner took $2 800 worth of goods out of the business purchases. Bank charges $440 entered in the cash book have not been posted to the bank charges account. A sale of goods to R Christie $4 600 was correctly entered in the Cash Book but entered in the personal account ad $6 400. Required: a. The Net profit originally calculated for the previous year was $56 800. Show your calculation of the correct figure. Please answer ASAP
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter2: Analyzing Transactions
Section: Chapter Questions
Problem 18E: Errors in trial balance The following preliminary unadjusted trial balance of Ranger Co., a sports...
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Correction of Errors
Grace’s trial balance did not balance, the debits exceeded the credits by $1 560. A suspense account was opened for the difference. You are asked to help and after inspection of the ledgers the following errors were found.
$2 500 received from sales of old motor vehicle had been entered in the Sales Account.
Purchases day book had been overcast by $200.
A cheque of $1 900 from A. Brent was accidentally credited to A. Brian’s account.
The owner took $2 800 worth of goods out of the business purchases.
Bank charges $440 entered in the cash book have not been posted to the bank charges account.
A sale of goods to R Christie $4 600 was correctly entered in the Cash Book but entered in the personal account ad $6 400.
Required:
a. The Net profit originally calculated for the previous year was $56 800. Show your calculation of the correct figure.
Please answer ASAP
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