2020 USS 3N POA EOY P1 Q1
1 Jamie, the owner of Jem Bookshop, extracted the following balances from the books of her business on 31 August 2020.
The following transactions took place during September 2020.
1. Goods costing $3 000 were sold on credit for $7 500.
2. Obtained a bank loan of $20 000. $8 000 was used to pay the staff salaries and the rest deposited into the business bank account.
3. Jamie issued a personal cheque of $4 000 to pay a credit supplier.
REQUIRED
a. State one reason for preparing a trial balance.
[1]
b. Prepare a trial balance for Jem Bookshop as at 30 September 2020. Show all workings.
[9]
[TOTAL 10]
SOLUTION
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a)
To ensure arithmetic accuracy in recording transactions.
To facilitate the preparation of the financial statements.
b)