- 10 Marks
FA – Nov 2019 – L1 – SB – Q1c – Trial Balance: Usefulness and Limitations
Extracts a trial balance from the given ledger account balances.
Question
Question:
c. Using the following list of balances extracted from the ledger accounts of John Thomas Enterprises, the MD/CEO wants you to confirm if the various double entries passed by the newly employed accounts officer were arithmetically correct:
| Description | N’000 |
|---|---|
| Revenue | 53,000 |
| Purchases | 32,200 |
| Property, Plant, and Equipment (Cost) | 59,000 |
| Accumulated Depreciation | 25,000 |
| Inventory as at July 1, 2018 | 7,800 |
| Interest Expense | 200 |
| Administrative Expenses | 7,000 |
| Accrued Expenses | 400 |
| Distribution Cost | 8,900 |
| Retained Earnings | 23,500 |
| Bank Overdraft | 1,000 |
| Cash and Cash Equivalent | 200 |
| Accounts Receivables | 9,000 |
| Finance Cost | 1,000 |
| 5% Loan Note | 5,000 |
| Share Capital | 10,000 |
| Other Components of Equity (OCE) | 5,000 |
| Accounts Payables | 2,400 |
Required:
Extract a trial balance for the period ended June 30, 2019. (10 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Double Entry, Extraction, Ledger, Trial Balance
- Level: Level 1
- Topic: Trial Balance: Usefulness and Limitations
- Series: NOV 2019
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