On 31 March 20-4 the following balances appeared in the ledger of Terry Dennis: LO8

£

Drawings 1,600 Rent and rates 350 Stock, 1 April 20-3 5,500 Bank overdraft 750 Wages 8,000 Petty cash 60 Creditor for office equipment 1,600 Selling expenses 3,100 Purchases 11,206 Trade creditors 2,746 Carriage outwards 410 Sales 26,532 Office expenses 4,730 Trade debtors 2,650 Commission received 520 Furniture and equipment 19,600 Discount allowed 428 Capital

?

You are required to:

(a) Prepare a trial balance as at 31 March 20-4 and calculate the capital account balance.

(b) State the procedures you would adopt if the trial balance does not agree.

(c) Certain types of error can occur even though the trial balance agrees. Name and describe three types of such errors.