Find the Errors in the Cash Disbursements Journal Below and Rewrite

question 39

Essay

Find the errors in the cash disbursements journal below and rewrite the journal with corrections. The company chart of accounts is as follows:

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Definitions:

Deposits in Transit

Funds that have been recorded as deposits by a company but not yet processed or recognized by the bank, often resulting in timing differences in account reconciliations.

NSF Cheques

Checks that cannot be processed because the drawer’s account lacks sufficient funds, standing for "Non-Sufficient Funds".

Equity Investments

Financial assets representing ownership interest in a company, including stocks, which provide dividends and potential capital gains.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.