Review Questions

Volume 1 - Chapter 32

1. Enter up the entries needed in the journal to correct the following errors.
Narratives are not required:

(a) Motor expenses of £56 entered incorrectly in the Motor vehicles account.
(b) Insurance £98 paid by cash should have been entered as £89.
(c) Sale of goods for £375 to S Groom entered into the account of S Green.
(d) Private withdrawal of £150 cash had been debited to Sundry expenses
account
(e) Returns outwards of £75 had been credited to Returns inwards by mistake.
(f) Purchase of stock on credit from D Winter for £115 had been completely
omitted.

2. Give the journal entries need to record the corrections of the following.
Narratives are not required.

(a) Cash sales of £450 were debited to the bank column of the cashbook.
(b) Discounts allowed of £500 was incorrectly debited to the account of Discounts
received.
(c) A purchase of goods on credit from H Taylor for £45 was entered in both
accounts as £54.
(d) Rent paid by cheque for £70 was not recorded at all in the books.
(e) Sales of office equipment for £750 was entered in the sales account.
(f) Cash paid £46 for electricity was debited to the cash accounts and credited to
the electricity account.

3. Journal entries to correct the following are required but the narratives are not
required.

(a) A repair bill for the company car of £87 was charged to drawings mistake
under the assumption that it was the owner’s car.
(b) Rent received of £73 was credited to the Rent expense account.
(c) A sale of goods £134 on credit to J Lander was entered in both accounts as
£143.
(d) Extra capital of £2,000 paid into the bank was credited to a loan account by
mistake.
(e) Sale of goods £67 on credit to M Chase was entered into the account of M
Chang.
(f) Sales of goods £143 on credit to I Levinson were entered on the wrong side of
both accounts.
4. Show the journal entries necessary to correct the following errors.

(a) Purchase of goods for £312 from M Dines had been entered in the account of
M Daines.
(b) Motor expenses of £28 were debited to the Motor vehicles account.
(c) Rent paid by cheque of £180 was entered in both accounts as £108
(d) Sale of motor vehicle worth £300 was entered in the sales account.
(e) Commission received of £23 in cash was entered in both accounts as £32

5. Show the journal entries necessary to correct the following errors.

(a) Advertising expenses of £124, paid by cheque, was entered in both accounts
as £142.
(b) A private expense paid from the business bank account of £12 was debited to
Sundry expenses.
(c) Sales of goods on credit for £439 to S Skinner was entered in the account of S
Seymour by mistake.
(d) Sale of a computer for £275 was credited to the sales account.
(e) A cheque received from B Gumble for £75 was debited to the cash account by
mistake.