Review questions
26.5 Give the journal entries needed to record the corrections of the following. Narratives are not
required.
a)
b)
c)
d)
e)
Extra capital of £12,000 paid into the bank had been credited to Sales account.
Goods taken for own use £140 had been debited to Sundry Expenses.
Private rent £740 had been debited to the Rent account.
A purchase of goods from F. Smith £530 had been entered in the books as £350.
Cash banked £620 had been credited to the bank column and debited to the cash column in the
cash book.
f) Cash drawings of £270 had been credited to the bank column of the cash book.
g) Returns inwards £205 from N. Sturgeon had been entered in error in G. Milne’s account.
h) A sale of an old printer for £70 had been credited to Office Expenses.
26.2 Show the journal entries necessary to correct the following errors:
a) A sale of goods for £630 to J. Trees had been entered in J. Tees’s account.
b) The purchase of a printer on credit from D. Hogg for £846 had been completely omitted from
our books.
c) The purchase of a laptop for £389 had been entered in error in the Office Expenses account.
d) A sale of £260 to G. Lee had been entered in the books, both debit and credit, as £206.
e) Commission received £340 had been entered in error in the Sales account.
f) A receipt of cash from A. Salmond £130 had been entered on the credit side of the cash book
and the debit side of A. Salmond’s account.
g) A purchase of goods for £410 had been entered in error on the debit side of the Drawings
account.
h) Discounts Allowed £46 had been entered in error on the debit side of the Discounts Received
account.
Question 3
An examination of the accounts of Xavier Co. for the month of December 2021 revealed the
following errors after the transactions were journalized and posted.
a. While recording depreciation expense, accumulated depreciation expense was
debited by $2,150 and cash account was credit by $2,150.
b. While recording purchase of machinery for $10,800, the book keeper debited
purchases account and credited bank account.
c. While recording the receipt of commission on sales in cash $400, book keeper
debited cash account and credited sales account.
d. Owner withdrew $3,590 from bank account for personal use. The bookkeeper
debited sundry expenses by $590 and credited bank $590.
e. A receipt of payment from accounts receivable for $740 was debited to cash and
credited to accounts payables.
f. When accruing interest on investment, the book keeper debited interest
receivable by $290 and credited interest payable for $290.