Question 2.2 Red Traders have the following Creditors: Balances on 28 February 2019: Clear Traders R74 000 Uniform Traders R46 000 Imagine Traders R105 000 Upon investigation the following errors/omissions were noted: 1. An original credit note for R750 received from Uniform Traders was correctly recorded in the subsidiary journal but was posted to the incorrect side of Uniform Traders' account. 2. No entry has been made for interest charged at 7.5% per annum on Red Traders' account of R44 000 by Clear Traders on 28 February 2019. This amount is 6 months overdue. 3. Goods purchased from Uniform Traders for R15 000 (excluding VAT) was entered correctly into the subsidiary journal but posted to Imagine Traders' account in error. 4. Clear Traders granted Red Traders a credit note for R1 800. The credit note has been entered into the subsidiary journal as R8 100 and posted as such. 5. The total of the creditors journal was overcast by R2 500. Required: Q.2.2 Calculate the final balance owing to each debtor/creditor after taking into account the errors and omissions. Complete the table provided in your answer booklet and remember to show all your workings as marks will be awarded to these.

Question 2.2 Red Traders have the following Creditors: Balances on 28 February 2019: Clear Traders R74 000 Uniform Traders R46 000 Imagine Traders R105 000 Upon investigation the following errors/omissions were noted: 1. An original credit note for R750 received from Uniform Traders was correctly recorded in the subsidiary journal but was posted to the incorrect side of Uniform Traders' account. 2. No entry has been made for interest charged at 7.5% per annum on Red Traders' account of R44 000 by Clear Traders on 28 February 2019. This amount is 6 months overdue. 3. Goods purchased from Uniform Traders for R15 000 (excluding VAT) was entered correctly into the subsidiary journal but posted to Imagine Traders' account in error. 4. Clear Traders granted Red Traders a credit note for R1 800. The credit note has been entered into the subsidiary journal as R8 100 and posted as such. 5. The total of the creditors journal was overcast by R2 500. Required: Q.2.2 Calculate the final balance owing to each debtor/creditor after taking into account the errors and omissions. Complete the table provided in your answer booklet and remember to show all your workings as marks will be awarded to these.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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