Correction of ErrorsGrace’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 Show the requisite journal entries to correct the balance.

There are various errors that take place while recording, posting, and balancing accounts. These…

Answered: orrection of Errors Grace’s trial…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 72E

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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 Show the requisite journal entries to correct the balance.

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