The following errors have been made in the books of Mr Bean. Identify those errors that the
Question:
The following errors have been made in the books of Mr Bean. Identify those errors that the use of a trial balance will reveal and those it will not.
1 The sales account has been incorrectly added.
2 The purchase of goods on credit was entered in the relevant creditor account but not the purchases account.
3 Wages paid of £92 was debited as £92 to the wages account but as £29 credit to the bank account.
4 The sale of goods for £100 on credit was not entered in the books at all.
5 An electricity bill was correctly credited to the bank account but the debit entry was made to the office expenses account not the electricity account.
6 Goods for £50 were bought on credit and entered in the books as purchases account debit £5 creditor account credit £50. Sales made of £50 cash were entered in the cash account as debit £50 but as £5 to the credit of the sales account.
7 A loan made to Mr Bean of £1,000 from Mr Atkinson was debited to the loan account and credited to the bank account.
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