2023 WAEC Accounts – Principles of Accounts Theory a. The following is the trial balance of Abete Trading Company as at 31st December…

a. The following is the trial balance of Abete Trading Company as at 31st December 2020:
 

Additional information
(i) Stock in hand on 31st December 2020 was Le 4,000
(ii) Investigation revealed the following errors which necessitated the opening of suspense account:
– Drawings of Le 1,000 was posted to salaries and wages account
– Furniture bought at Le 1,560 was wrongly debited to fixed asset as Le 300
– Purchases day book was undercast by Le 2,000
– Discount allowed of Le 200 to a customer had not been posted to the customer’s account
(iii) Depreciation of fixed assets is 10% per annum.

You are required to:

Correct the errors through journal entries (no narration is required).

b. The following is the trial balance of Abete Trading Compnay as at 31st December 2020:
 

Additional information
(i) Stock in hand on 31st December 2020 was Le 4,000
(ii) Investigation revealed the following errors which necessitated the opening of suspense account:
– Drawings of Le 1,000 was posted to salaries and wages account
– Furniture bought at Le 1,560 was wrongly debited to fixed asset as Le 300
– Purchases day book was undercast by Le 2,000
– Discount allowed of Le 200 to a customer had not been posted to the customer’s account
(iii) Depreciation of fixed assets is 10% per annum.

You are required to:
Prepare Trading, Profit and Loss Account for the year ended 31st December, 2020