2020 PHS 3N POA EOY P2 Q4

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 


Cost of sales


10 200 

Discount received







27 000


Office equipment

5 100 


Sales returns


1 700

Sales revenue

32 250


Trade payables


10 050

Trade receivables 


9 600



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.


a. Prepare the adjusted trial balance as at 30 September 2020.


b. State two purposes of preparing trial balance.


[TOTAL 12]

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Check for arithmetic accuracy in recording of the ledger accounts.

Facilitate the preparation of financial statements.

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