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A bookkeeper extracted the following Trial Balance as on 31st March, 2019: Youare required to: (i) State the errors giving reasons (ii) Redraft the Trial Balance correctly. |
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Answer» Solution :(i) (a) Stock on 31st March, 2019, will not appear in the Trial BALANCE because it represents a part of the goods purchased but not yet sold. As the total purchases have been included in the Trial Balance, there is no need of including the Closing Stock again. (b) Machinery is an ASSET and thus will appear in the DEBIT column. (c) WIFE's loan to the business is a liability. It will appear in the credit column. (d) Discount allowed, being an expense, will appear in the debit column. (e) Drawing made by the PROPRIETOR is a dencrease of capital (i.e., decrease of proprietor's claim from the business). It will appear in the debit column. 
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