The draft trial balance of Regent Ltd as at 31 #8226

The draft trial balance of Regent Ltd as at 31 May 20X3 agreed. The business proceeded with
the preparation of the draft final financial statements and these showed a profit of
£305,660.However, a subsequent audit revealed the following errors:1. Bank charges of £56
had been omitted from the cash book.2. The purchases journal had been overcast by £400.3.
The sales journal had been under-cast by £100.4. An invoice for £127 received from Alpha Ltd
had been entered into the purchases journal as £217. (This is quite independent of the error
made in the purchases journal referred to above.)5. It is now considered prudent to write off the
balance of £88 on P. Shadey's account as bad.6. An invoice from Caring Garages Ltd for £550
in respect of servicing Regent Ltd's motor vehicles had been posted to the debit of motor
vehicles account.7. Depreciation of 10 per cent per annum has been provided for on motor
vehicles inclusive of the £550 invoice referred to in point 6 above.Regent Ltd maintains control
accounts for credit sales and credit purchases in its general ledger. Individual accounts for
credit customers and credit suppliers are maintained on a memorandum basis only.Requireda.
Prepare journal entries to show how the above errors would be corrected.b. What is the profit
for the year after correcting the above errors?View Solution:
The draft trial balance of Regent Ltd as at 31

ANSWER
http://paperinstant.com/downloads/the-draft-trial-balance-of-regent-ltd-as-at-31/

1/1
Powered by TCPDF (www.tcpdf.org)