Page 145 - DMGT104_FINANCIAL_ACCOUNTING

Unit 7: Trial Balance

We redraft the trial balance as below with rectified balances. The ledger accounts, which have Notes
undergone rectification, are marked (*)
Trial balance (Revised)
(As on 31 March 2011)

S. No. Particular Amount (Dr.) Amount (Cr.)
( ) ( )
1. Capital Account 5,00,000
2. Sales Account* 25,95, 000
3. Purchases Account* 18,30,000
4. Salaries Account* 5,10,000
5. Rent, rates & taxes Account* 1,77,500
6. Interest income Account* 1,30,350
7. Interest expenses Account* 1,81,350
8. Bank Loan Account 20,00,000
9. Returns Inward Account* 82,700
10. Returns Outward Account 25,000
11. Carriage Inward Account* 80,000
12. Carriage Outward Account* 62,500
13. Income tax paid Account 50,000
14. Property, plant and equipment 18,00,000
15. Debtors Account 3,55,000
16. Creditors Account* 54,700
17. Cash and Bank balances 1,76,000
53,05,050 53,05,050

The suspense account no longer figures in the Trial Balance. It implies that all the errors affecting
the agreement of trial balance have been identified and rectified.

Self Assessment

Multiple Choice Questions:
10. Purchases Day Book under cast by 200.
(a) Error of Principle
(b) Compensating Error

(c) Error of Omission
(d) Error of Commission.
11. Amount spent on the repair of a plant is wrongly debited to repairs A/c:
(a) Error of Omission
(b) Error of Commission

(c) Error of Principle
(d) Compensating Error.
12. Mr. Ram’s account is debited in place of Shyam’s A/c for 500.
(a) Error of Omission
(b) Error of Principle

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