Question

A.A ENTERPRISES                                              
ADJUSTED JOURNAL ENTRIES / ADJUSTED TRIAL BALANCE                                              
                                              
Assume that you are working as a Senoir Accounts Officer in A.A Enterprise, The financial year 31 December 2018 has just ended and your assistant pepared a trial balance which is showing a difference of £ 47,090 which he had put on the credit side of a suspense account. You have have investigated and have found the following errors:                                              
                                              
                                              
                                              
i)   The total of purchases return day book amounting to £ 16,160 had not been posted to the ledger                                          
ii)   Discount received amounting to £ 11,320 had been debited to discount allowed account.                                          
iii)   The sales account had been added short by £ 10,000                                          
iv)   An asset bought four years ago for £ 7,000 and depreciated to £ 1,200 had been sold for £ 1,500. The receipt of cash has been posted in the bank book but corresponding entries have not been recorded.                                          
                                              
v)   A credit sale of £ 1,470 had been credited to the customer's account as £ 1,740. A bad debt of £ 1,560 has been written off. Provision for doubtful debts is to be maintained at 10% of debtors. Debtors appearing in the trial balance are £ 23,390 and the provision for bad debts account shows a credit balance of £ 2,320                                          
                                              
                                              
vi)   A sub-total of £ 29,830 on the list of closing stock had been carried over as £ 29,380 and another sheet had been overcast by £ 1,000                                          
                                              
                                              
Based on the above information, you are required to prepare Adjusting Journal Entries to be incorporated in the Trial Blance as on 31 December 2018                                              
                                      ITS A FULL FLEDGE QUESTION WHAT KIND OF ADDITIONAL INFORMATION REQURIED      

Answer 1

Assume that you are working as a Senior Accounts Officer in A.A Enterprise, The financial year 31 December 2018 has just ended and your assistant prepared a trial balance which is showing a difference of £ 47,090 which he had put on the credit side of a suspense account. You have have investigated and have found the following errors:

Assume that you are working as a Senior Accounts officer in AA Enterprise, the fnancial year 31 December 2018 has just ended and your assistent prepared a trial balance which it showing a difference of £ 42,090- which he had put on the credit side of a Suspense account you have investigated found the following errors and have AA enterprises - General Townal. Items Account Titles and deợcalption Debit Credit Suspens Fox- f 16,160.00 purchase return f 16,160.00 Supens account £ 22,640.00 Discount Allowed £11.320.00 Discount Received £ (1,320.00

suspenre Acount £10,000.00 Sales f 10,000.00 Accumlated deprecation - non- current asseta (1000-1200) € 5,800,00 Sадрҳом Ассоцку. £ 1,500.00 Non-current assets £7,000.00 profit on sale of non- Current cassette £ 300.00 Ceestomen account (1,740 +1,470) € 3,20.00 Supense account £ 3,210.00 Allowance for Doubtful Delta | £ 1,560.00 $ 1,560.00 Sundry Debtors profit and loss (see wolking notul $1,744.00 Allowance for Doubtful dubte £4,744.00

Trading Account Cooo-(29830- 29380) £ 550.00 dosing inventay $S5000 Debtors alc Balance old 23,390.00 £1560.00 Allowance for doubtful Idiftful Suspense 3,210.00 ole £25040.00 Balance eld 96,600.00 E26,60000 Allowance for Doubtfel Detta Ale Debtou 1.560.00 £2,320.00 Balance bid Dalam Ad L107 2,50400 100.00 24-25,040 profft and loss-bod doble (belonery figure 4,064.00 £4,064.00