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MM Traders when preparing their financial statements realized the following errors upon investigation in the books of accounts. a) Extra capital of Ksh 400,000 paid into...

MM Traders when preparing their financial statements realized the following errors upon investigation in the books of accounts.
a) Extra capital of Ksh 400,000 paid into the bank had been credited to Sales account.
b) MM took goods for own use Ksh 7,000 but this had been debited to General Expenses.
c) Private insurance Ksh 1,500 had been debited to Insurance account.
d) A credit purchase of goods from ABC Ltd Ksh 35,000 had been entered in the books as Ksh 25,000.
e) Credit sales of Ksh 14,500 to Albert did not appear anywhere in the books.
f) Cash drawings of Ksh 4,000 had been credited to the bank column of the cashbook.
g) Returns inwards Ksh 16,800 from Simon had been entered in error in Simpson account.
h) A sale of a motor van Ksh 240,000 had been credited to Motor Expenses.
Required:
Prepare journal entries to correct the above errors.

Answers

Kavungya answered the question on August 17, 2021 at 09:36

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