10.4 Consider the following trial balance (amounts in euro):

Beppe & Brothers Auto Parts Store – trial balance as at 31 March 2005 Debit Credit Cash and cash equivalents 32,000 Trade and other receivables 28,000 Inventory 258,000 Prepaid rent 8,000 Prepaid insurance 2,000 PPE 66,000 Accumulated depreciation 30,000 Trade and other payables 84,000 Short-term borrowings 80,000 Issued capital 24,000 Retained earnings 20,000 Sales 1,576,000 Cost of sales 1,000,000 Wages 200,000 Other operating expenses 160,000 Administrative expenses 60,000 TOTAL 1,940,000 1,688,000

(a) List and describe all the errors made in the trial balance of Beppe &

Brothers Auto Parts Store.

(b) Prepare a correct trial balance.