Despite having little knowledge of book-keeping, Nabil decided to prepare a trial balance at the end of his financial year on 28 February 2018.
The trial balance he prepared, which contains errors, was as follows.
Debit Credit
$ $
Revenue 119 100
Purchases 72 000
Capital 155 000
Loan – AB Loans 80 000
Premises 200 000
Fixtures and fittings 22 000
Trade receivables 7 600
Trade payables 6 850
Bank overdraft 3 950
Wages 32 300
General expenses 25 400
Inventory 1 March 2017 5 500
28 February 2018 6 100
Difference on trial balance 13 900
374 850 374 850
The following errors were later discovered.
1 Nabil’s cash drawings, $10 000, had been posted to the wages account.
2 No entry had been made for purchases returns, $150.
3 $140 owed by a credit customer should have been written off as a bad debt.
4 No entry had been made for bank charges, $210.
5 The balance of the petty cash book, $100, had been omitted from the trial balance.
REQUIRED
Prepare a corrected trial balance at 28 February 2018.
Nabil
Corrected Trial Balance at 28 February 2018
Revenue
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Debit
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Credit
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$
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$
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........................
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Purchases
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........................
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Capital
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........................
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........................
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Loan – AB Loans
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........................
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........................
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Premises
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........................
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........................
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Fixtures and fittings
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........................
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........................
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Trade receivables
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........................
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........................
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Trade payables
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........................
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........................
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Bank overdraft
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........................
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........................
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Wages
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........................
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........................
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General expenses
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Inventory ..........................
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