Task 2

20 marks

The following trial balance does not balance.

Make the necessary adjustments to correctly balance the trial balance and by placing the account balances in the correct debit/credit column.

The following corrections and or adjustments need to be made for errors in the trial balance:

A number of account balances have been placed on the wrong side of the trial balance

An amount of $7,000 was omitted to be posted to the credit side of the Bank account

An amount of $6,000 was wrongly posted to the credit side instead of the debit side of the Inventory account

Trial Balance

Account Name Debit Credit

Bank loan - 180,000

Office Equipment 16,000

Premises - 280,000

Accounts Receivable - 15,500

Accounts Payable - 9,500

Bank - 35,600

Insurance -2,500

Wages - 65,500

Sales - 120,000

Cost of goods sold - 35,000

Bad debts expense -3,000

Rent expense - 52,000

Inventory - 24,000

Capital - 224,600