Page 313 - Accountancy_F5

(e) Carriage inwards of TZS 387,000 had been credited to the returns inwards
account as TZS 378,000.
(f) A payment of TZS 228,000 for electricity charge had been recorded twice
in the electricity account, but was omitted from the cash book.
Required: prepare
FOR ONLINE READING ONLY
(i) Journal entries to correct the errors.

(ii) Suspense account after the correction of errors.
(iii) Statement showing the adjustment to the net profit after correction of errors.
7. You are required to rectify the following errors which have been discovered after
LANGUAGE EDITING
the preparation of the Trial balance as at 31 March 2020: -
st
(a) Goods taken by the proprietor; TZS 250,000 have not been entered in the
books at all.

(b) Rent of TZS 900,000 paid for the proprietor’s residence was debited to rent
account.
(c) Cash received from Mgaza TZS 750,000 had been entered on the receipts
side of the cash book only.
(d) Interest receivable TZS 500,000 was posted to loan account.
(e) TZS 450,000 being purchases returns were posted to the purchases account.

(f) Amount received TZS 540,000 from Makwaia family was posted to the
debit of their account.
Required: prepare
(i) Suspense account duly balanced

(ii) Statement of corrected net profit as the firm shows TZS 2,500,000 as its net
profit.
8. The following is the trial balance of Lavida Cosmetics for the year ending 30th
June, 2021:

Student’s Book Form Five
300

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