A business prepared a trial balance that included a suspense account. Draft financial statements were prepared which showed a profit for the year of $85 000. The following errors were then discovered. 1 Discounts allowed of $1000 had been debited to the discounts received account. 2 Motoring expenses of $4000 had been debited to the purchases account. 3 A payment for purchases of $5000 had been correctly entered in the cash book but credited to the drawings account. After correcting these errors the balance on the suspense account was eliminated. What was the revised profit for the year?

The bank statement of a business showed a credit balance of $4520. This did not agree with the cash book. The followi…

What may help a book-keeper detect errors in the accounting records of a business? 1 books of original entry 2 sales…

The closing balance on a purchases ledger control account is $163762. The purchases journal has been undercast by $10…

Which rule does not apply in the absence of a partnership agreement?

The partnership of Ravi and Tania, who shared profits equally, was dissolved. The capital accounts prior to dissoluti…

A company issues 50000 ordinary shares of $5 each at a premium of $15. It also issues a 4% debenture, $300000. By whi…