Page 112 - Account 10

Points to Remember
i. Errors of omission ii. Errors of commission iii. Compensating errors
vi. Errors of principle vi. Errors of posting in the wrong account

9. Illustrative Problems and Solutions

Illustration 2
From the following balances taken from the books of Sanokaji & Co. as on 31 Ashwin,
th
075, prepare a trial balance.
Heads of account Amount (Rs) Heads of account Amount (Rs)
Cash 10,000 Commission paid 150
Sundry debtors 21,600 Purchases 20,000
Salaries & wages 2,700 Carriage inward 3,000
Capital 50,000 Sundry creditors 5,000
Sales 48,500 Drawings 6,000
Freight 4,000 Return outwards 2,000
Discount earned 450 Bank 9,000
Furniture 2,500 Machinery 27,000

Solution:
Trial Balance of Sanokaji & Co,
As on 31 Ashwin, 075
st
S.No Particulars L.F. Dr. Balance Cr. Balance
1. Cash (Assets) 10,000 -
2. Sundry debtors (Assets) 21,600 -
3. Salaries & wages (Expenses) 2,700 -
4. Capital (Capital) - 50,000
5. Sales (Income) - 48,500
6. Freight (Expenses) 4,000 -
7. Discount earned (Income) - 450
8. Furniture (Assets) 2,500 -
9. Commission paid (Expenses) 150 -
10. Purchases (Expenses) 20,000 -
11. Carriage inward (Expenses) 3,000 -
12. Sundry creditors (Liabilities) - 5,000
13. Drawings (Less from capital) 6,000 -
14. Return outwards (Less from purchase) - 2,000
15. Bank (Assets) 9,000 -
16. Machinery (Assets) 27,000 -
Total: 1,05 950 1,05,950

112 Aakar’s Office Practice and Accountancy - 10 Trial Balance 113