Reference no: EM131967378

Problem

Harambee Trader started operating on the 01 January 2015. Throughout the year the following transactions were recorded in the books as at 31 December 2015.

1. Bank charges of N$ 2 550 was debited to Rent income account.

2. A cheque payment to R Smith of N$ 1 200 was omitted.

3. Cash drawings of N$ 450 had been credit to the bank account and debited to drawings account.

4. Credit sale of N$ 3 850 was recorded as N$ 3 580.

5. Discount allowed of N$ 150 was debited in error to Discount received.

6. Credit sale of N$ 1 000 was recorded as N$ 1 200 both in the sales account and customer (debtors) account.

7. Cash payment of N$ 120 for wages was wrongly debited to cash and credit to wages account.

8. Motor vehicle that was purchased for N$ 4 500 was debited to purchases account and credited to bank account.

9. Commission received of N$ 330 was credited to Sales account.

10. Loan received of N$ 550 was credited to Creditor account and debited to bank.

Required:

Prepare journal entries to correct above mentioned errors. Narratives are not required.