One of your clients, Mr. X has asked you to finalise his accounts for the year...

 

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One of your clients, Mr. X has asked you to finalise his accounts for the year ended 31st March. 2021. Till date, he himself has recorded the transactions in books of accounts. As a basis for audit. Mr. X furnished you with the following statement. Dr. Balance Cr. Balance X's Capital X's Drawings Leasehold premises 1.556 564 750 Sales 2,750 Due from customers 530 Purchases Purchases return 1.259 264 Loan from bank 256 Trade payables Trade expenses 528 700 Cash at bank 226 Bills payable Salaries and wages Inventories (1.4.2020) 100 600 264 Rent and rates 463 Sales return 98 5,454 5,454 The closing inventory on 31st March, 2021 was valued at 574. Mr. X claims that he has recorded every transaction correctly as the trial balance is tallied. Check the accuracy of the above trial balance. One of your clients, Mr. X has asked you to finalise his accounts for the year ended 31st March. 2021. Till date, he himself has recorded the transactions in books of accounts. As a basis for audit. Mr. X furnished you with the following statement. Dr. Balance Cr. Balance X's Capital X's Drawings Leasehold premises 1.556 564 750 Sales 2,750 Due from customers 530 Purchases Purchases return 1.259 264 Loan from bank 256 Trade payables Trade expenses 528 700 Cash at bank 226 Bills payable Salaries and wages Inventories (1.4.2020) 100 600 264 Rent and rates 463 Sales return 98 5,454 5,454 The closing inventory on 31st March, 2021 was valued at 574. Mr. X claims that he has recorded every transaction correctly as the trial balance is tallied. Check the accuracy of the above trial balance.

Answer rating: 100% (QA)

Answer The trial balance prepared by Mr X is not correct The corrected trial balance is as given bel... View the full answer