3.1. The trial balance
A subsection of Accounting, 7707, through 3. Verification of accounting records
Listing 10 of 30 questions
Ame provided the following balances from his books at 31 March 2020. $ Capital 10 369 Drawings 4 000 Equipment at cost 15 500 Provision for depreciation of equipment 3 100 Inventory at 1 April 2019 1 765 Trade receivables 1 290 Bank overdraft Trade payables 1 600 Sales 31 250 Purchases 18 330 Purchases returns Carriage inwards Discount received Commission receivable 1 500 Rent and insurance 5 700 Office expenses 2 425 REQUIRED Prepare Ame’s trial balance at 31 March 2020. Show the difference in the trial balance totals as a suspense account balance. Ame Trial Balance at 31 March 2020 Capital Drawings Equipment at cost Provision for depreciation of equipment Inventory at 1 April 2019 Trade receivables Bank overdraft Trade payables Sales Purchases Purchases returns Carriage inwards Discount received Commission receivable Rent and insurance Office expenses Suspense Debit $ …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… ______________ ______________ Credit $ …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… ______________ ______________ Ame later discovered several errors had been made in the accounting records. REQUIRED Complete the table to show the entries required to correct each error. The first one has been completed as an example. Error Entries required to correct the error Debit Credit Account $ Account $ No entry had been made for cash sales, $60. Office expenses, $240, had been credited to the wages account. No debit entry had been made. The purchases journal total for March 2020 was $2165. This amount was incorrectly recorded in the purchases account as $2651. An insurance payment, $375, had been correctly recorded in the cash book but no other entry had been made. The purchase of equipment, $800, was correctly recorded in the cash book but debited to the office expenses account. Cash …………… ……………… ……………… ……………… ……………… ……………… ……………… ……………… ………. ………. ………. ………. ………. ………. ………. ………. Sales …………… …………… …………… …………… …………… …………… …………… …………… ……… ………. ………. ………. ………. ………. ………. ………. Prepare the suspense account. Start with the difference on the trial balance prepared in Part . Balance or total the account as necessary. Ame Suspense account Date ……… ……… ……… ……… ……… ……… ……… Details ……………………… ……………………… ……………………… ……………………… ……………………… ……………………… ……………………… $ ……… ……… ……… ……… ……… ……… ……… Date ……… ……… ……… ……… ……… ……… ……… Details …………………… …………………… …………………… …………………… …………………… …………………… …………………… $ ……… ……… ……… ……… ……… ……… …… [Total 20]
7707_s20_qp_21
THEORY
2020
Paper 2, Variant 1
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Questions Discovered
30