Arthur started a new business on 1 January 20X9. You are supplied with the following nominal ledger
Question:
Arthur started a new business on 1 January 20X9. You are supplied with the following nominal ledger accounts, which have been closed off and a trial balance extracted. These are Arthur’s only transactions in this period.
Trial balance for Arthur as at 10 January 20X9:
The trial balance should balance.
There are seven errors (six are double-entry errors, the other is a description error).
Required
a. Describe the entries required to correct the errors.
b. Redraft the amended ledger accounts and trial balance as at 10 January 20X9.
Cash account Date Details £ Date Details £ Date 80 6 Jan Sales 100 9 Jan H&L 8 Jan Sales 89 189 11 Jan Bal b/d 119 10 Jan Bal c/d Capital introduced account Date Details £ Date 1 Jan 10 Jan Cap a/c 100 100 119 189 Details £ Bank 1,000 100 Date 1 Jan. 10 Jan Sales revenue account 10 Jan P/L a/c 11 Jan Details £ Date 6 Jan 8 Jan 10 Jan 327 327 Bank account Details £ Date Cap int. 1,000 2 Jan Sales 192 3 Jan Bal b/d 1,192 742 10 Jan Details £ Cash 100 Cash 98 Bank 129 Details H&L Van Bal c/d 327 £ 50 500 742 1,192
Step by Step Answer:
Solution a The entries entails writing the transactions from the tria...View the full answer
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
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A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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