Prepare the correcting entries for the below transactions:
c) Drawings of $5,000 by the owner, Mr. Seow was posted
as a debit of $5,000 to Capital and a credit of $5,000 to
Cash.
My Ans:
Error:
Dr Capital $5, 000
Cr Cash $5, 000
Dr Cash $5,000
Cr Capital $5,000
???
Dr Drawings $5000
Cr Capital $5, 000
d) On 30 Dec 2004, Mr. Seow received $7,000 from a
customer for services rendered from June to Dec 2004, each month
amounting to $1,000.
Mr Seow posted the full amount as a debit to Cash and a
credit Fees Earned accounts on 31 Dec 2004.