1. The following is Trial Balance of Ricky's Repair for the financial year ended 31 December 20X3: Non-current ass ets Inventory Accountreceivables Cash Capital Revenue Rent Electricity Repair and maintenance Salaries and wages Advertisement expensese DR $ 2,000 2,000 5,000 1,500 2,000 1,000 500 2,000 3,500 19,500 CR $ 14,000 5,500 19,500 The accounts clerk has made the following mistakes while preparing the above trial balance a) b) Sales to a customer on credit on 30 December 20X3 amounting to $165 was wrongly taken up as $105 in both revenue and accounts receivables Non-current assets consist of 2 office equipment bought during the year. The company's policy is to charge a full year depreciation in the year of acquisition. The depreciation rate for office equipment is 20% on straight line basis. This depreciation amount has been omitted in the preparation of the trial balance c) Rental amounting to $1.200 for 3 months has been paid on 1 November 20X3. The full amount has be taken up as rental expense as at 31 Dec 20X3.
1. The following is Trial Balance of Ricky's Repair for the financial year ended 31 December 20X3: Non-current ass ets Inventory Accountreceivables Cash Capital Revenue Rent Electricity Repair and maintenance Salaries and wages Advertisement expensese DR $ 2,000 2,000 5,000 1,500 2,000 1,000 500 2,000 3,500 19,500 CR $ 14,000 5,500 19,500 The accounts clerk has made the following mistakes while preparing the above trial balance a) b) Sales to a customer on credit on 30 December 20X3 amounting to $165 was wrongly taken up as $105 in both revenue and accounts receivables Non-current assets consist of 2 office equipment bought during the year. The company's policy is to charge a full year depreciation in the year of acquisition. The depreciation rate for office equipment is 20% on straight line basis. This depreciation amount has been omitted in the preparation of the trial balance c) Rental amounting to $1.200 for 3 months has been paid on 1 November 20X3. The full amount has be taken up as rental expense as at 31 Dec 20X3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1.
The following is Trial Balance of Ricky's Repair for the financial year ended 31
December 20X3:
Non-current ass ets
Inventory
Account receivables
Cash
Capital
Revenue
Rent
Electricity
Repair and maintenance
Salaries and wages
Advertisement expensese
DR
$
2,000
2,000
5.000
1,500
2,000
1,000
500
2,000
3,500
19.500
CR
$
14,000
5,500
19.500
The accounts clerk has made the following mistakes while preparing the above trial
balance.
a)
b)
Sales to a customer on credit on 30 December 20X3 amounting to $165 was wrongly
taken up as $105 in both revenue and accounts receivables
Non-current assets consist of 2 office equipment bought during the year. The
company's policy is to charge a full year depreciation in the year of acquisition. The
depreciation rate for office equipment is 20% on straight line basis. This
depreciation amount has been omitted in the preparation of the trial balance
c) Rental amounting to $1,200 for 3 months has been paid on 1 November 2015. The
full amount has been taken up as rental expense as at 31 Dec 2003.
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