Need help -F3 problems

[vishwas1980]

Hi

Need help on the below problems

1. The book keeper made the following mistakes
Discount allowed $3840 was credited to discount received account
Discount received $2960 was debited to discount allowed account
Which journal entry will correct the errors

A. Discount allowed DR 7680
Discount received CR 5920
Suspense account CR 1760

B. Discount allowed DR 880
Discount received DR 880
Suspense account CR 1760

C. Discount allowed DR 3840
Discount received CR 2960
Suspense account CR 880

Answer to this is B. Can you please explain?

2. GTG Text page no. D.3.24, Recording of transactions & Events. Self examination Q No. 6. In the calculation, purchase returns & sales returns are not taken into consideration. Can you please explain


Look forward to your help

[Acid]

Hi Trust,

As far as I can recall my knowledge about this , I think that B is the Right answer. because due to the error of book keeper , The a/c are overstated by $880 i.e. The difference between $3840-$2960 = $ 880 .$880 is then taken as a difference for which a suspense a/c is being opened and difference being taken there , so to balance the trail balance. So debiting these relevant figures into there correct a/c and putting the difference in the suspense a/c would balance the entires and ractify the error. I hope you have good know-how about suspense a/c here bcoz its one of the playing factor here.

However , This is ONLY what I can THINK at the best of my weak memory.

You should refer to the Tutors solution , which should follow shortly.


Cheers,

Acid

[sunset_corniche]

Just trying to help you out, I think the entry to the error would be the option B itself. I have tried to list the entries for the two errors.

Error: Discount allowed $3840 was credited to discount received account

Discount allowed DR 3840
Discount received DR 3840
Suspense Account CR 7680

Error: Discount received $2960 was debited to discount allowed account

Suspense Account DR 5920
Discount allowed CR 2960
Discount received CR 2960

These two entries can be combined into the following entry

Discount allowed DR 880
Discount received DR 880
Suspense Account CR 1760

As Acid said, the tutors' solution is the perfect one to be relied upon and they would respond to you in a short time.

Have a good day!

[Acid]

Salam Sunset ,

Thank you and I agree with you .



Acid

[vishwas1980]

Hi Acid & Sunset

Thank you for your help

Regards
Vishwas:)

[vishwas1980]

Hi

Can anyone help me on the problem no.2 of my request

Thanks in advance

Vishwas

[Grace]

[vishwas1980]

Hi Grace

Would appreciate if you could provide me a copy of errors on F3 study material . It will be of great help during my revision

Regards
Vishwas

[Acid]

Hi Grace

Would appreciate if you could provide me a copy of errors on F3 study material . It will be of great help during my revision

Regards
Vishwas

I dont think that there would be soo many errors that you need a seperate copy of Errors :D

[Grace]

Hi Vishwas,

True, there are not so many mistakes in F3. However, we are in the process of preparing the list of errors and we have not yet completed this work.

Whenever you have any such doubts you can clear it through this forum.