Sales Book Error Analysis
Understanding the Scenario:
- The sales book has been totaled incorrectly, showing a hundred short goods worth 150 written by Green Company that have not been entered anywhere.
- Additionally, goods worth 250 have been purchased but posted to the debit of the supplier.

Analysis of Errors
Missing Entries in Sales Book:
- The incorrect total of a hundred short goods worth 150 written by Green Company indicates a discrepancy in the sales book.
- These missing entries can lead to inaccuracies in financial records and misrepresentation of sales figures.
Misposting of Goods Purchase:
- The goods purchase of 250 being posted to the debit of the supplier suggests an error in the accounting entries.
- This misposting can impact the supplier's account balance and distort the company's financial statements.

Impact on Financial Statements
Inaccurate Sales Figures:
- Failure to record the sales made by Green Company can lead to understatement of revenue and overstatement of losses.
- This error can misguide stakeholders and affect decision-making processes.
Distorted Supplier Accounts:
- Misposting the goods purchase to the supplier's debit can result in an incorrect accounts payable balance.
- This can cause discrepancies in the supplier's financial records and affect future transactions.

Recommendations for Correction
Reconcile Sales Book:
- Review all transactions related to Green Company and ensure they are accurately recorded in the sales book.
- Correct any errors in the total calculation to reflect the true sales figures.
Adjust Goods Purchase Entry:
- Identify the correct account to which the goods purchase of 250 should be posted.
- Make the necessary adjustments to ensure accurate recording of purchases and avoid misstatements in financial statements.
By addressing these errors promptly and accurately, the company can maintain the integrity of its financial records and ensure reliable reporting for stakeholders.