Reference no: EM132973087

June 2019 the following information appeared in the accounting records of Ndung and Mkoka.

Balance of Accounts Receivable Control account, $3725

Total of schedule of accounts receivable, $1970

Balance of Accounts Payable Control account, $5010

Total of schedule of accounts payable, $2745

Because the schedules and control account balances do not agree, an investigation was carried out. The following errors and omissions were discovered.

1. The schedule of accounts payable was understated by $545 because of error in addition.

2. The balance of a debtor was accidentally left out of the schedule of accounts receivable, $25.

3. The total of the accounts payable column in the cash payments journal is overstated by $200 because of an addition error.

4. $108 owed by a debtor was written off as uncollectable. The write-off was recorded in the general journal, but the entry was never posted.

5. The total payment of $1955 made to creditors was debited to the Accounts Receivable Control account in error.

6. The sales journal was incorrectly added and posted as $2139. The total should have been $2319.

7. A credit note given for $40 was recorded as $60 in the general journal and posted as such.

8. An invoice for $125 was recorded correctly in the purchases journal but posted to the creditor's account as $152.

9. A cheque received from a debtor for $65 was dishonoured. To record the dishonoured cheque, an entry was made in the cash payments journal but included in the accounts payable column in error. The posting to the debtor's account in the subsidiary ledger was done correctly.

Required

Problem (a) Rule columns as shown below. Indicate how the errors and omissions should be corrected by inserting the amounts in the correct columns. Obtain totals for the columns and reconcile the control totals to the respective schedule totals.