1
Journalise the matters arising from the following items in the books of B Danby, including
the narrative in each case. Note that for this purpose cash and bank items may be journalised.
In the case of those items which gave rise to a difference in the trial balance you are to assume
that the difference was previously recorded in a suspense account.
(a) Discounts allowed during March amounting to £62 were posted to the credit of the discounts
received account.
(b) The sales day book was overcast by £100.
(c) The motor van standing in the ledger at £1,800 was exchanged for fittings valued at £1,400
plus a cheque for £700.
(d) £470 has been included in the wages account and £340 in the purchases account. These
amounts represent expenditure on an extension to the business premises.
(e) A cheque for £86 received from C Blimp and discount of £4 allowed to him were correctly
recorded but, when the cheque was subsequently dishonoured, no further entries were
recorded.
(f
) A cheque for £76 paid to D Hood was correctly recorded in the cash book but was posted in
error to D I Hoade’s account as £67.