Peter has extracted the balances from his ledgers as at 28 February 2023. The trial balance won’t balance, the credits exceed the debits by Sh 1,840. You have been asked to help correct the problem. After inspection of the ledger accounts, you have discovered the following errors: 1. A balance of Sh 1,468 on a debtor’s account, Aspen, has been omitted from the schedule of debtors, the total of which was entered as debtors in the trial balance. Is this one of the six errors? yes (yes/no) To correct this error Debit and Credit (Write only one word for the account name, e.g Suspense) 2. A small piece of equipment purchased for Sh 1,200 had been entered in the purchases account. Is this one of the six errors? (yes/no) To correct this error Debit and Credit (Write only one word for the account name, e.g Suspense) 3. The receipts side of the cash book had been under cast by Sh 800. Is this one of the six errors? (yes/no) To correct this error Debit and Credit (Write only one word for the account name, e.g Suspense) 4. The total of one page of the sales journal had been carried forward as Sh 6,790 instead of the correct amount which was Sh 7,690 Is this one of the six errors? (yes/no) To correct this error Debit and credit with Sh (Write only one word for the account name, e.g Suspense) 5. A credit note for Sh 236 received from a supplier, Markone, had been posted on the wrong side of her account. Is this one of the six errors? (yes/no) To correct this error Debit and Credit with Sh 472 (Write only one word for the account name, e.g Suspense) 6. An electricity bill in the sum of Sh 152, not yet accrued for, was discovered in the filing tray. Is this one of the six errors? (yes/no) To correct the error Debit and Credit with Sh 152 (Write only one word for the account name, e.g Suspense) 7. If the net income before corrections was Sh 11,500, it changed to Sh after the corrections. (insert commas in your answer. 8. After the corrections, total assets will (increase/decrease) by Sh

Peter has extracted the balances from his ledgers as at 30 March 2020. The trial balance won’t balance, the credits exceed the debits by Sh 1,536. You have been asked to help correct the problem. After inspection of the ledger accounts, you have discovered the following errors. For each error indicate (by dragging the answers given at the bottom and dropping at the right place) whether correction would require the use of the suspense account or not. 1. A balance of Sh 818 on a debtor’s account, Mawingu, has been omitted from the schedule of debtors, the total of which was entered as debtors in the trial balance. blank 2. A small piece of machinery purchased for Sh 1,200 had been entered in the repair account. blank 3. The receipts side of the cash book had been under cast by Sh 720. blank 4. The total of one page of the sales journal had been carried forward as Sh 8,154 instead of the correct amount which was Sh 8,514. blank 5. A credit note for Sh 179 received from a supplier, Markone Investments, had been posted on the wrong side of her account. blank 6. An electricity bill in the sum of Sh 152, not yet accrued for, was discovered in the filing tray. blank Do not use suspense account Do not use suspense account Do not use suspense account Use suspense account Use suspense account Do not use suspense account Do not use suspense account Use suspense account Use suspense account Do not use suspense account Use suspense account Use suspense account

The trial balance can help in detecting errors. Identify which of the following errors would be detected at the point of extracting a trial balance. 1-The bookkeeper enters cash received of Sh 50,000 from Peter Jones as a debit in the cashbook but enters the credit of Sh 50,000 in the ledger account of Roger Jones. 2-The bookkeeper enters a cash sale as a credit of Sh 4,000 in the cash book and as a debit of Sh 4,000 in the sales account. 3-The bookkeeper omits a cash sale of Sh 23,000 from the cash book and from the sales accounts. 4-The bookkeeper enters a cash sale as a debit of Sh 49,000 in the cash book and as a credit of Sh 94,000 in the sales account Choose: not possible to tell; will not be detected, trial balance will still agree; will be detected by the trial balance not agreeing; may or may not be detected

Which of the following statements about the trial balance is incorrect?a.It is a list of balances from the ledger accountsb.It provides a useful check on the accuracy of the ledger accountsc.It calculates the profit or loss achieved by the businessd.The total value of debits must equal the total value of credits

If an incorrect amount is captured on the source document, this error will NOT be detected in the trial balance becauase the total debits and the total credits will still be equal.

Which of these errors will cause the Trial Balance to be out of balance?Select one:a.All of these errors.b.Purchase of supplies for cash pf P 1,500 is posted as debit to Cash and credit to Supplies Expense.c.A collection from a customer of P250 was recorded as debit to Accounts Receivable and credit to Cash for the same amount.d.Sales on credit of P850 were recorded as debit to Accounts Receivable of P850 and credit to Sales of P580.