Question

Question 13.
Prepare a correct Trial Balance from the following Trial Balance in which there are certain mistakes:

Answer 1

debyors should be in dr capital to be crefit

Answer 2

Correct form of Trial Balance is as follows;

Explanation:

                                            Trial Balance                                              

Particulars                                      Debit(Rs.)          Credit(Rs.)            

Cost of Goods sold                         1,50,000                   -

Debtors                                             60000                     -

Creditors                                               -                       30,000

Fixed Assets                                     50,000                    -

Opening stock                                  60,000                     -

Expenses                                           20,000                    -

Sales                                                      -                       2,00,000

Capital                                                   -                        90,000

Suspense A/c                                        -                         20,000

                                                                                                             

Total                                                    340000                 340000

                                                                                                                   

*Notes:The following errors were identified in the given Trial Balance

1) Closing stock does not form part of Trial Balance.It is shown outside

the trial balance.

2) Debtors balance is shown on debit side and not on credit side of trial balance.

3) Expenses is shown on debit side of Trial balance. In the given question,Expenses were given on the credit side of trial balance.

4) Capital is a credit balance and therefore,is shown on credit side of trial balance.