Question

5(a) If the two sides of a Trial Balance agree, does this absolutely prove that the books are Le caroer in every respect? Give reasons for your answer. (b) Criticise and correct (if necessary) the following Trial Balance of Akoka Enterprises as at June 30. 20X2. N'000 17,900 N000 2,100 7,450 46,200 78,050 12,410 400 Capital Motorcar Inventory, 1/7/20X1 Purchases Sales Wages & Salaries Electricity Equipment Carriage outwards Returns inwards Returns outwards Provision for doubtful debts Discounts allowed Discounts received Rents, rates and insurance Furniture & fittings 6,400 460 210 580 700 560 400 2,230 2,950 116

Answer 1

Answer! - O No, if the two sides of trial balance agree, it does not Proves that the books ogree in enery Respect, these amare many a hidden emors in trial balance which we can't identitify bearly by checking total balance because even if trial balance showing the Matching of debit & Gedit balances these errors Exist. like if I take an exple example of an essor than lets take ommission emor s In which there the whole tras transaction is not recorded So, then he is not change in trial balance as no debit & no Credit So, it is an esmor but we can't identify bearly by checking total balance (6) Caspian Capital should be o Recorded in Credit side as Capital is a leader part of Liabilities Motor Car should be To Debit Asset recorded in the as it is a fixed Carrage outwards should be recorded in Debit as these are the Expenses

Return outwards @ Should be Recorded in Credit as it the purchase Return account opposite to Purchase Provision for douttful delt - should be Recorded in Credit side as it on Part of Provision and other liabilities Trade Payable - Should be recorded in Credit side as it is a liability Trade Receivable - Should be Recorded in Debit side as it is Assets . Bank Overdraft - Should be Recorded on side as it is a short Liability Credit term