Question

ERRORS NOT REVEALED BY THE TRIAL BALANCE The following errors were found in the books of Joe Smart at the end of business on August 31,2019

5) Both the drawings and discount received accounts had been over added by $40.

6) $150 Discount allowed to jones had not been recored in the books.

You are required to prepare journal entries to show the correction of the errors above.

Answer 1

Anawer Pectyfication gnf EYOL At the year end, cempaay has 99de varjoys evrovs in Hie figageiql stakmegts which 15 not libely to be faynd. krtory like ammission of egby, wwng gmaynt postig, wong aclount debitel qpd areditel At such time, Campan1 willPasssect|ticat|og_eqby to bue piclyu of figgacial sląement when cempay knowT pa5s eaby get about uch mistakes. Joe Smart Rectification Jonal Entrjes for year end Auy 31,2013 Partjulars Debil-C$)|Credlit G) 59) Csh Alc Dr. To Drqueings Ala (Being_ovevvalfed doquings selyce) Oiscovgt Reeived Alc To Accoynts Payqble CAang overvalyed discount receved ba been redyced) D. oiscount A/lowed Alc To AccetAts Revejvgble Alc (Jages). ching anrecouled diseynt qllwel has recwuled) |১o. 1J0 beey recurled) Total 230 230

Explapation )avervqlueadded of Piqulngs Drqueings_is the dedyction of the owna In the ques.tion, diquins was overqludedy $40 01quings hqs debit Gl4gcee which now seluce, so ItE qssumel thyt drawings gre male in ash As reluctjon of dhawngs ielll leal to get cash by awner A butneis cqpiliLot bustnesI by we have to it is to be cvedibel. 7 overualyeqllel of Dircounb Recevel n the questia, discoypt Recejved is overlglaeqdel. Discoynt Reveluel ts the 1gcome from the company pat of vjew qN get from the Accounts lyle. As it is income it has creljt balagca. so, o ze/yce such amount we aedit qccounts pqyable ,gr 16 balaqce of aceugbs pajqble. with bave to deblt the discount vecepelani lo95 qudel fack to the )Unrecordel oirc-inb Allowol In the questjon, campany kas_net_recavel divcoypt qllowed expense. So,'therefore the enfry oll aque to passed. oiscougt Alowel is expense fo the busigess qof it is given to the qccaunbecegble Tharetove qccoughsrecejuable has to be aelitel. piscoynt Allowed has to Ge debi bel end ,