Step 1
First entries made on sale of motor vehicle had to be reversed.
Thus journal entry would be
Debit sale Account N$ 11,100
To Credit Bank Account N$ 11,100
Step 2
On account of sale of motor vehicle, following journal entry would be made
Debit Cash received N$ 11,100
Debit accumulated depreciation A/C N$ 42,300
To Motor Vehicle A/C N$ 50,250
To gain on sale of motor vehicle N$ 3,150
Step 3
On wrong accounting of total of sales day book, only a correction entry of Sales would be made in general ledger.
Thus Sales account would be credited by N$ 3300.
Step 4
On purchase of consumables, following journal entry will be made
Debit Consumables N$ 840
Credit Petty Cash A/C N$ 840
Step 5
For correction of wrong entry of drawing account, following journal entry will be made
Debit Drawing A/c N$ 3300
Debit Sales A/c N$ 3300
Credit Cash N$ 6600
( It is assumed that as per statement cash was debited by crediting sales account. Accordingly correction made)
Step 6
On wrong accountal of discount allowed shown as discount received, following journal entry has to be made
Debit Discount received A/c N$ 195
Credit Discount Allowed A/c N$ 195
Step 7
Purchase return was shown correctly in suppliers account, then only single correction in purchase return account as to be made by making following entry
Credit Purchase return a/c N$ 330
Step 8
Following journal entry will be made
Debit Bank N$ 3900
Credit Drawing A/c N$ 3900
(20 MARKS) QUESTION2 Johanna Benson is a sole proprietor with a small business operating in the...