Correction of errors

Credit purchase of goods worth $340 has been recorded as $430. The correcting journal entry would be:

• DR Inventory 90 CR Trade payable 90

• DR Trade payable 90

  CR Inventory 90

• DR Cash at bank 90 CR Inventory 90

• DR Inventory 90 CR Cash at bank 90

Payment of $1200 for utilities by cheque has been omitted from the books. The correcting journal entry would be:

• DR Utilities expense 1200

  CR Cash at bank 1200

• DR Cash at bank 1200

  CR Utilities expense 1200

• DR Utilities expense 1200

  CR Utilities expense payable 1200

• DR Utilities expense payable 1200

  CR Utilities expense 1200

Purchase of office equipment worth $400 by cheque has been recorded as repairs of equipment. The correcting journal entry would be:

• DR Repairs expense 400

  CR Cash at bank 400

• DR Repairs expense 400

  CR Office equipment 400

• DR Office equipment 400

  CR Repairs expense 400

• DR Repairs expense 400

  CR Repairs expense payable 400

Credit sale of goods worth $300 to Lucy has been posted to Lucas’ account. The correcting journal entry would be:

• DR Trade receivables - Lucas

  CR Trade receivables - Lucy

• DR Trade receivables - Lucas

  CR Sales revenue

• DR Trade receivables - Lucy

  CR Sales revenue

• DR Trade receivables - Lucy

  CR Trade receivables - Lucas

Credit sale of goods worth $300 to Lucy has been posted to Lucas’ account. The correcting journal entry would be:

• DR Trade receivables - Lucas 300

  CR Trade receivables - Lucy 300

• DR Trade receivables - Lucas 300

  CR Sales revenue 300

• DR Trade receivables - Lucy 300

  CR Sales revenue 300

• DR Trade receivables - Lucy 300

  CR Trade receivables - Lucas 300

Cheque of $550 received from Betty has been debited to Betty’s account and credited to cash at bank account. The correcting journal entry would be:

• DR Trade receivables - Betty 550

  CR Cash at bank 550

• DR Trade payable - Betty 550

  CR Cash at bank 550

• DR Cash at bank 1100

  CR Trade receivables - Betty 1100

• DR Cash at bank 1100

  CR Trade payable - Betty 1100