Accounting - Correction Of Errors

[sriddex]

The following errors were discovered in the accounts of S Woods after the preparation of the Income statement on 31 December Year 2:

1. The Sales Account had been overcast by £189.

2. A purchases invoice for £32 had been omitted from the accounts.

3. Bank charges of £25 correctly entered in the Bank Account had not been posted to the ledger.

4. A credit note received from J Kingston had been correctly entered in the Returns Account as £55 but had been entered in the Kingston's account as £5.

5. A table for reception costing £45 had been wrongly debited to the Purchases Account instead of the Furniture and fittings Account.

In each of the above examples which account should be debited and which account should be credited, Then . . . Prepare a statement showing the revised profit if the profit calculated before the correction of errors amounted to £35,890.

[derekpara]

I think the question is intended for you, not for us !