Question

find and correct the wrong part

Name Date ANSWERS TO SECTION 7.2 EXERCISES (cont.) Exercise 1 (cont.) ACCOUNT Revenue No. 400 PARTICULARS P.R. DEBIT DATE 20 Oct 31 CREDIT DRCR BALANCE Forwarded 400 - 300 - CR CR CR 20 lolog ACCOUNT Car Expense No. 505 P.R. DEBIT CREDIT DR/CR BALANCE DATE PARTICULARS 20- Oct 31 Forwarded Nov. 15 DR DR 29161430 316 4 30 200 ACCOUNT Rent Expense No. 510 DATE PARTICULARS PR DEBIT CREDIT DR/CR BALANCE Forwarded DR Oct Nov. 31 12 7 000 7700 - ZOO - DR ACCOUNT Woges Expense No. 515 PARTICULARS PR. DEBIT CREDIT DR/CR BALANCE DATE 20- Oct 31 Forwarded 4 30/ 216

Answer 1

There is a error in Balance amount , after the credit of $400 the balance would have been $19,809.00 instead of $18709.

Revenue

Date	Particulars	PR	Debit $	Credit $	DR/CR	Balance $
Oct 31	Forwarded				CR	19409.00
Nov 7		J12		400.00	CR	19809.00
Nov 10		J12		300.00	CR	20109.00

The wrong Part in the exercise is in Car expense account with a debit balance and the transaction recorded on Nov 15 is an increase to car expense account. The entry is wrongly credited with 200, The amount needs to be debited to record the expense for $200

Wages expense

Date	Particulars	PR	Debit $	Credit $	DR/CR	Balance $
Oct 31	Forwarded				DR	2964.30
Nov 15		J12	200.00		DR	3164.30