What is a trial balance?
Give two reasons for preparing a trial balance.
1.1
How is a trial balance prepared?
1.2
Name and explain three types of error not revealed by a trial balance.
22
2.3
State the three-step procedure to correct an error.
Explain the purpose and use of a suspense account.
3.1
The following are balances in Lim Soon's general ledger at the end of the year
| Sales | 21,500 |
| Purchases | 8,000 |
| Motor van | 11,000 |
| Bank overdraft | 4,000 |
| Inventory | 9,500 |
| Capital | 3,000 |
What is the total of each column in Lim Soon's trial balance?
A
$22,500
B
$28,500
C
$31,500
D
$57,000
The following are the year-end balances in the general ledger of a business:
| Fee income | 58,900 |
| Expenses | 21,200 |
| Receivables | ? |
| Payables | 3,300 |
| Bank | 20,000 |
| Capital | 24,500 |
| Office equipment | 7,500 |
Assuming the trial balance balances, what is the missing figure for receivables?
A
$29,000
B
$53,200
C
$67,700
D
$82,200
Which of the following errors is identified by a trial balance?
A complete reversal of entries
Error of principle
Error of single entry
Transposition error