2020 PHS 3N POA EOY P2 Q4
4 Ryan Raspberries recently hired an inexperienced accounts clerk, Gabriel. The following trial balance of the business prepared by Gabriel contained errors.
Trial balance for 30 September 2020
Dr ($) | Cr ($) | |
Bank loan | 9 000 | |
20 200 | ||
Cash at bank | 11 120 | |
10 200 | ||
100 | ||
880 | ||
27 000 | ||
Office equipment | 5 100 | |
1 700 | ||
32 250 | ||
Trade payables | 10 050 | |
Trade receivables | 9 600 | |
Utilities | 6 000 |
Additional information:
Gabriel forgot to include the following transactions during the preparation of the trial balance.
1. Ryan, the owner, took a printer, $600, for personal use.
2. Ryan withdrew $3 000 from the business bank account for office use.
REQUIRED
a. Prepare the adjusted trial balance as at 30 September 2020.
[10]
b. State two purposes of preparing trial balance.
[2]
[TOTAL 12]
Check for arithmetic accuracy in recording of the ledger accounts.
Facilitate the preparation of financial statements.