Plz go Q4
Redraft the trial balance and state the errors. .....
Dear Student
Errors :
1. Machinery shall have the credit balance.
2. Closing stock should not appear in trial balance.
3. Wife's Loan to the business is a liability so it shouldcomein credit side.
4. Discount allowed, Drawings should have the debit balance.
Correct trial balance :
Regards
Errors :
1. Machinery shall have the credit balance.
2. Closing stock should not appear in trial balance.
3. Wife's Loan to the business is a liability so it shouldcomein credit side.
4. Discount allowed, Drawings should have the debit balance.
Correct trial balance :
| Trial Balance | |||
| Dr. | Cr. | ||
| Particulars | Amount | Particulars | Amount |
| Furniture and Fittings | 20,000 | Capital | 200,000 |
| Debtors | 200,000 | Creditors | 80,000 |
| Stock (01 Apr 2014) | 104,000 | Sales | 858,000 |
| Trade expenses | 50,000 | Wife's Loan to the business | 50,000 |
| Wages | 30,000 | ||
| Machinery | 50,000 | ||
| Purchases | 625,000 | ||
| Discount allowed | 4,000 | ||
| Drawings | 45,000 | ||
| Motor Van | 60,000 | ||
| 1,188,000 | 1,188,000 | ||
Regards