2020 JYSS 3N POA EOY P2 Q5

5 Bala has extracted the following balances from the ledger accounts of his business as at 30 June 2020.

 

$

Capital 

17 470

Drawings

7 200

Fixtures and fittings 

15 000

Accumulated depreciation of fixtures and fittings 

3 000

Cash in hand 

450

Trade payables

1 780

General expenses 

9 000

Inventory 

4 600

Cost of sales 

11 000

Sales revenue 

25 000

REQUIRED

a. Prepare the trial balance of Bala’s business as at 30 June 2020.

[10]

b. State two uses of a trial balance.

[2]

[TOTAL 12]

SOLUTION
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b)

To check for arithmetic errors.

To facilitate the preparation of the financial statements.