Page 291 - Accountancy_F5

(g) Transposition errors: These errors occur when an accounting officer accidentally
reverses several adjacent digits when recording a business transaction. For example,
a credit sale of TZS 10,450,000 might be entered accidentally in the books of
accounts as TZS 10,540,000. Despite this error, the trial balance totals would still
balance. This is because the total value of the debits still equals the total value of
the credits, even though the individual amounts are incorrect.
FOR ONLINE READING ONLY
These types of errors highlight the importance of a careful review and reconciliation in
the accounting process. Even when the trial balance agrees, errors may still be present,
underscoring the need for thorough checks and balances in the accounting system.

LANGUAGE EDITING
Example 9.1
In January, 2022, Mtakuja Enterprises recorded the following business transactions:
Jan. 1: A credit purchase of TZS 500,000 from Mwigazi Ltd was omitted when
recording in the day book.
Jan. 3: Sales of TZS 250,000 to Maganga were posted to the Mganga account.

Jan. 6: Purchases of furniture from Rafiki Enterprises Limited amounting to TZS
1,000,000 were posted to the purchase’s day book.
Jan. 8: Interest paid of TZS 50,000 to CRDB Plc Bank was recorded as TZS 5,000 in
the journal entries.
Jan. 12: The sales account was overstated by TZS 100,000, and the salary expenses
account was also overstated by TZS 100,000.

Jan. 18: An amount of TZS 350,000 paid to a supplier was debited to the cash book
and credited to the supplier’s account.
Jan. 24: TZS 520,000 received from a debtor was recorded as TZS 250,000 in the
general journal.

Required: Create the journal entries needed to correct these accounting errors for
Mtakuja Enterprises

Student’s Book Form Five
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