13

4 Rachel is a trader.
The totals of Rachel’s trial balance prepared on 30 September 2023 did not agree and the
difference was placed in a suspense account.

Rachel later discovered the errors shown in the following table.

REQUIRED

(a) Complete the following table to show the entries required to correct each error. The first one
has been completed as an example.

Entries required to correct the error

Error Debit Credit
Account $ Account $
A payment for rent, $350, had been Rent
350 Wages 350
debited to the wages account. payable

The sales journal for September had ................... .............. ................... ..............
been overcast by $90.
................... .............. ................... ..............

Sales returns, $110, had been ................... .............. ................... ..............

recorded as purchases returns.
................... .............. ................... ..............

................... .............. ................... ..............

................... .............. ................... ..............

A payment for office expenses, $18, ................... .............. ................... ..............

had been recorded in the office
expenses account as $81. ................... .............. ................... ..............

A petty cash book payment, $29, to ................... .............. ................... ..............

Cole, a supplier, had been recorded
in the column for motor expenses. ................... .............. ................... ..............

[9]

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(b) Prepare the suspense account. Include the balancing figure as the original difference on the
trial balance.

Rachel
Suspense account

Date Details $ Date Details $

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

[5]

Rachel’s draft profit before the errors were discovered was $18 243.

REQUIRED

(c) Calculate Rachel’s profit for the year ended 30 September 2023 after the errors in the table
have been corrected.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

............................................................................................................................................. [5]

(d) State why financial statements may still be reliable even if errors are present.

...................................................................................................................................................

............................................................................................................................................. [1]

[Total: 20]
© UCLES 2023 0452/22/O/N/23
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1 Seok buys and sells goods on credit. He has three credit customers and allows one of them,
Naomi, trade discount of 10%. All customers pay Seok by bank transfer.

The following balances were extracted from Seok’s sales ledger at 1 August 2023.

$
Naomi 450
Siena 155
Bwana 386
991

The following transactions took place in August 2023.

Aug 3 Sold goods on credit, to Naomi, list price $410

5 Sold goods on credit, $89, to Bwana

10 Naomi returned goods, list price $20

11 Naomi paid $423 in full settlement of the amount she owed at 1 August

19 Sold goods on credit, $180, to Bwana

22 Sold goods on credit, to Naomi, list price $230

27 Bwana returned goods, $19

29 Bwana paid $400

REQUIRED

(a) Prepare the sales journal for August 2023.

Total the journal and indicate the ledger account where the total would be posted.

Seok
Sales journal

Date Details $ $

.............. ............................................... ................... ...................

.............. ............................................... ................... ...................

.............. ............................................... ................... ...................

.............. ............................................... ................... ...................

.............. ............................................... ................... ...................

.............. ............................................... ................... ...................

.............. ............................................... ................... ...................

[4]

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(b) Prepare the sales returns journal for August 2023.

Total the journal and indicate the ledger account where the total would be posted.

Seok
Sales returns journal

Date Details $ $

.............. ............................................... ................... ...................

.............. ............................................... ................... ...................

.............. ............................................... ................... ...................

.............. ............................................... ................... ...................

.............. ............................................... ................... ...................

[3]

(c) Prepare the account for Naomi for August 2023 as it would appear in the books of Seok.
Balance the account and bring down the balance at 1 September 2023.

Seok
Naomi account

Date Details $ Date Details $

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

[6]

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 4

On 31 August Seok decided to write off the amount owing by Siena as an irrecoverable debt.

REQUIRED

(d) Prepare Seok’s sales ledger control account for August 2023. Balance the account and bring
down the balance at 1 September 2023.

Seok
Sales ledger control account

Date Details $ Date Details $

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

.......... ....................................... ............... .......... ...................................... ...............

[7]

[Total: 20]

© UCLES 2023 0452/22/O/N/23