O-LevelAccountingPreparation of financial statementsOct/Nov 2018Paper 2 Q220 Marks
East Town Decorators have two separate departments, paints and wallpapers. The following information is available, for the 3-month period ended 30 September 2018. | | | $ | | :---------------- | :------ | ---: | | Revenue | Paints | 12000| | | Wallpapers | 8000 | | Purchases | Paints | 2000 | | | Wallpapers | 2500 | | Inventory 1 July 2018 | Paints | 2300 | | | Wallpapers | 1800 | | Inventory 30 September 2018 | Paints | 3100 | | | Wallpapers | 1600 | | Direct wages | | 6000 | | Direct expenses | | 4800 | On inspection of the ledger the following errors were found. 1 The purchase of paint from PP Limited, $5100, had been posted to the ledgers as $1500. 2 Direct wages, $600, paid in cash had been credited to the direct wages account and debited to the cash account. 3 Direct expenses included the purchase of an office computer, $800. REQUIRED
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