The trial balance for Bungwe B Ltd, a general dealer filed to agree on 31 December 2016. A difference of K 511,370 was f

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The Trial Balance For Bungwe B Ltd A General Dealer Filed To Agree On 31 December 2016 A Difference Of K 511 370 Was F 1 (90.7 KiB) Viewed 15 times

The trial balance for Bungwe B Ltd, a general dealer filed to agree on 31 December 2016. A difference of K 511,370 was found on the credit side. Upon checking the books, the following errors and omissions were discovered; 1. Coffee tables purchased on credit for K2800 had been entered on the incorrect side of the trade payables account and credited as K1800 to the equipment account. 2. A credit note sent to trade receivable for K620 had been entered on the day books as K260 and was subsequently posted to the incorrect side of the relevant ledger accounts. 3. Insurance due K340 and rent prepaid to Buungwe B K460 were not recorded in the books. 4. Goods previously sold on credit for K920, had been returned to Bungwe B. These returns had been incorrectly entered as K20 on the credit of equipment account and as K290 on the debit of purchases account 5. Cash payments of K450 for repairs to equipment had been credited to the trade payables account and also credited to the motor vehicles account. 6. A payment of K141, 000 for staff wages has been debited in the cash book but no entry has been made in the wages account. 7. A receipt of K41,000 from Simon smith, a trade receivable has been debited to his personal account 8. A discount allowed of K128,000 has not been recorded in the personal account of Jambo limited LC C 2 136% Find has been made in the wages account. 7. A receipt of K41,000 from Simon smith, a trade receivable has been debited to his personal account 8. A discount allowed of K128,000 has not been recorded in the personal account of Jambo limited 9. A cheque to a supplier for K450,000 has been correctly shown as this amount in the bank and trade payables but has been recorded as K540,000 in the company's cash book 10. Delivery and installation costs of K161, 000 on new mining equipment had been recorded as a revenue expense. 11. The proceeds for the disposal of a plant for K25, 800 had been correctly debited to bank but credited to sales. The plant had originally cost K65, 000 for which K32, 600 had been provided as depreciation. 12. Discount allowed of K125, 000 had been posted to the credit side of the discount received account. 13. A purchase of raw materials of K350,000 had been recorded the purchases account as K850,000 Required: a) Journalise the necessary corrections b) Show the suspense account pdf Adobe Reader