Comments on: Errors Not Affecting The Trial Balance (Part 1 of 2) http://basiccollegeaccounting.com/errors-not-affecting-the-trial-balance-part-1-of-2/ Free Online Accountancy Learning For Colleges & Universities Sun, 07 Sep 2008 14:55:07 +0000 http://wordpress.org/?v=2.6.1 By: saeed http://basiccollegeaccounting.com/errors-not-affecting-the-trial-balance-part-1-of-2/#comment-11186 saeed Thu, 17 Jul 2008 06:10:26 +0000 http://basiccollegeaccounting.com/errors-not-affecting-the-trial-balance-part-1-of-2/#comment-11186 Cash sales was entered in the bank account $1466. is this a commission error or principle error Cash sales was entered in the bank account $1466. is this a commission error or principle error

]]> By: JOY http://basiccollegeaccounting.com/errors-not-affecting-the-trial-balance-part-1-of-2/#comment-11155 JOY Fri, 27 Jun 2008 06:56:35 +0000 http://basiccollegeaccounting.com/errors-not-affecting-the-trial-balance-part-1-of-2/#comment-11155 please attempt for me this quiz crake is a businessman operating a retail business in a small town. Due to the size of his business, he is not able to employ a qualified accountant on a permanent basis. The following information was extracted from the books of the business as at 31/ 10/06. KSHS. Freehold property (cost ) 600 000 Motor vehicles (NBV ) 750 000 Furniture and fittings ( NBV) 240 000 Stock 390 000 Trade debtors 500 000 Bank overdraft 60 000 Trade creditors 380 000 Accruals 15 000 10% loan 600 000 Provision for doubtful debts 25 000 The following transactions took place during the financial year ended 31/10/07. 1. Sales and purchases on credit amounted to sh. 2,080,000 and sh. 1,900,000 respectively. 2. The following transactions were carried out through the bank account. KSHS. Sales – cash 720 000 Purchases – cash 240 000 Payments to trade creditors 1,940 000 Purchase of furniture 200 000 Salaries and wages 160 000 Lighting 65000 General expenses 35000 Interest on loan 30 000 Drawings 60000 Repayment of loan on 30 / 4/2007 100 000 Collections from trade debtors 1,890 000 Proceeds from sale of motor vehicle 120 000 3. The business depreciate motor vehicles at 20% per annum on a reducing balance basis. A full years depreciation is provided on a motor vehicle acquired in the course of the year and no depreciation is provided on a motor vehicle disposed in the course of the year. 4. Furniture is depreciated at 10% per annum on cost and in proportion to the period used in the year. The additional furniture was purchased on 1 May 2007, while the cost of furniture held on 31 / 10/06 was sh. 400000. 5. Loan interest paid was for one – half year up to 30/4/07 6. The business received discount of sh. 40000 and allowed discounts of sh. 70 000. 7. Bad debts of sh. 20000 were written off. Provision for doubtful debts is to be maintained at 5% of the debtors balance at the end of the year. 8. Accruals are in respect of lighting and on 31/10/07 the amount accrued was sh.19000. 9. Muthusis business obtains a normal gross profit rate of 25% on selling price required. (a) Trading profit and loss account for the year ended 31 / 10 /10 (18 marks) (b) Balance sheet as at that date (12 mks) please attempt for me this quiz

crake is a businessman operating a retail business in a small town. Due to the size of his business, he is not able to employ a qualified accountant on a permanent basis. The following information was extracted from the books of the business as at 31/ 10/06.

KSHS.
Freehold property (cost ) 600 000
Motor vehicles (NBV ) 750 000
Furniture and fittings ( NBV) 240 000
Stock 390 000
Trade debtors 500 000
Bank overdraft 60 000
Trade creditors 380 000
Accruals 15 000
10% loan 600 000
Provision for doubtful debts 25 000

The following transactions took place during the financial year ended 31/10/07.

1. Sales and purchases on credit amounted to sh. 2,080,000 and sh. 1,900,000 respectively.
2. The following transactions were carried out through the bank account.

KSHS.
Sales – cash 720 000
Purchases – cash 240 000
Payments to trade creditors 1,940 000
Purchase of furniture 200 000
Salaries and wages 160 000
Lighting 65000
General expenses 35000
Interest on loan 30 000
Drawings 60000
Repayment of loan on 30 / 4/2007 100 000
Collections from trade debtors 1,890 000
Proceeds from sale of motor vehicle 120 000

3. The business depreciate motor vehicles at 20% per annum on a reducing balance basis. A full years depreciation is provided on a motor vehicle acquired in the course of the year and no depreciation is provided on a motor vehicle disposed in the course of the year.
4. Furniture is depreciated at 10% per annum on cost and in proportion to the period used in the year. The additional furniture was purchased on 1 May 2007, while the cost of furniture held on 31 / 10/06 was sh. 400000.
5. Loan interest paid was for one – half year up to 30/4/07
6. The business received discount of sh. 40000 and allowed discounts of sh. 70 000.

7. Bad debts of sh. 20000 were written off. Provision for doubtful debts is to be maintained at 5% of the debtors balance at the end of the year.
8. Accruals are in respect of lighting and on 31/10/07 the amount accrued was sh.19000.
9. Muthusis business obtains a normal gross profit rate of 25% on selling price required.

(a) Trading profit and loss account for the year ended 31 / 10 /10 (18 marks)
(b) Balance sheet as at that date (12 mks)

]]> By: Revision Notes On Correction Of Errors | Basic College Accounting.com http://basiccollegeaccounting.com/errors-not-affecting-the-trial-balance-part-1-of-2/#comment-10952 Revision Notes On Correction Of Errors | Basic College Accounting.com Tue, 29 Apr 2008 16:25:25 +0000 http://basiccollegeaccounting.com/errors-not-affecting-the-trial-balance-part-1-of-2/#comment-10952 [...] Know how to correct errors which do not affect the agreement of the Trial Balance – go to illustrated examples in the section on Errors-Not-Affecting-the-trial-balance-part-1-of-2/ [...] [...] Know how to correct errors which do not affect the agreement of the Trial Balance – go to illustrated examples in the section on Errors-Not-Affecting-the-trial-balance-part-1-of-2/ [...]

]]> By: NOYON http://basiccollegeaccounting.com/errors-not-affecting-the-trial-balance-part-1-of-2/#comment-142 NOYON Tue, 15 Aug 2006 12:50:04 +0000 http://basiccollegeaccounting.com/errors-not-affecting-the-trial-balance-part-1-of-2/#comment-142 i am doing an assignment on Accounting, but i am not able to complete it by myself. I need your help. i would like to get some topics on some topics. i am waiting for your kind reply. sincerely yours Noyon i am doing an assignment on Accounting, but i am not able to complete it by myself. I need your help. i would like to get some topics on some topics. i am waiting for your kind reply.
sincerely yours
Noyon

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