ATAR Notes: Forum
VCE Stuff => VCE Subjects + Help => VCE Arts/Humanities/Health => Topic started by: Hale_Lora on April 17, 2016, 07:34:39 pm
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Please help!
1. A payment of wages of $505 was incorrectly recorded in the cash payments journal as a payment to creditor- N. Smythe for $550
2. A payment of wages $234 was incorrectly recorded as in the cash payments journal as $432.
How do I record these in the General Journal? Or should they not be recorded in it?
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Accounting is one of my weakest subjects, but I'll give it a shot :P
1. Correct entry: Debit wages $505, Credit bank $505
What was done instead which is incorrect: Debit creditors control $550, Credit bank $550
What must be done to fix the mistake (the answer): Debit wages $505, debit bank $45, credit creditors control $550
2. I don't think you completely typed out the question?
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Oh, ok. I was getting confused because I thought I couldn't use 'bank' in the General Journal unless it is an commencing entry...?
Sorry, this is the full question I was given:
A payment for wages of $234 was incorrectly recorded in the cash payments journal as $432.
Basically, trying to figure out if the above correction occurs in the cash payment journal or the general journal?
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Correcting entries are done in the General Journal. So in this case, as it is a correcting entry, we can use bank in the GJ. :D
No worries, I'll give Q2 a shot!
2. Since it's a correcting entry, it will be recorded in the General Journal.
Correct entry: Debit wages $234, Credit bank $234
What was done incorrectly: Debit wages $432, Credit bank $432
To correct the mistake (ans): Debit bank $198, Credit wages $198
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Gotchya! Thank you so much!! :)
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Anytime Hale_Lora! ;D