The following errors have been made in the books of Mr Bean. Identify those errors that the

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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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Financial Accounting

ISBN: 9780273658597

3rd Edition

Authors: Anne Britton, Christopher Waterston

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