a. Identify the errors in the following transactions and state if they would affect the...
a. Identify the errors in the following transactions and state if they wouldaffect the agreement of the trial balance totals
- Purchase of consumable posted to purchases account
b. An invoice amount incorrectly posted to purchases day book
c. Returns outwards posted to the personal account only
d. The totals sales N120,000 was recorded as N102,000
e. Payment of cheque to Ige entered on the receipt side of the cash book and credited to Ige's account
Explanation
a.
- The error in this transactions is that consumables should be posted to the consumables account instead of the purchase account. This error will affect the agreement of the trial balance totals.
b.
- The error in this transaction is that an invoice amount should be posted to the purchases ledger account instead of the purchases day book. This error will not affect the agreement of the trial balance totals.
c. The error in this transaction is that returns outwards should be posted to both the personal account and the returns outwards account. This error will not affect the agreement of the trial balance totals.
d. The error in this transaction is that the cheque payment to Ige was posted on the receipt side of the cash book instead of the payment side, and credited to Ige's account. This error will affect the agreement of the trial balance totals.
e.
The payment of the cheque to Ige was incorrectly entered on the receipt side of the cash book and credited to Ige's account. This error result in an overstatement of receipts and an incorrect entry in Ige's account.
The error affects the trial balance totals as it misstates the receipts account and potentially lge's account.