Answer to Question #247897 in Accounting for OK MOLEFE

Question

-   Show the transaction will be entered in the General Journal of Koo Traders.

 - You must explain WHY this is an error.

 -Show how the transaction will be entered in the General ledger by using T-accounts.

transactions are as follows :

1) Depreciation on Vehicles is calculated at 20% on the diminishing balance method. The bookkeeper calculated the depreciation on vehicles at 25% on the Cost price method and entered the amount in the books of the business. No vehicles were sold or purchased during the financial year ended on 28 February 2021.

• vehicles ( 28 February 2021)= 880 000
• Accumulated depreciation ( 1 march 2020) = 155 200

3)An invoice received from Kamba Suppliers for the trading stock was recorded as R880 by the bookkeeper of Koo Traders. However, the statement received from Kamba

     Suppliers showed the correct amount outstanding as R8 800. Correct the error.

Answer 1

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