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Home > Business & Careers > Accounting   »   How can i correct this trial balance?

 
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Old Apr 29, 2008, 01:32 AM
marie claire
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How can i correct this trial balance?

The following trial balance as at 31 march 2007 was prepared by a person whose knowledge of accounts is very poor. As a matter of fact he made several mistakes including the omission of the firms capital.

Sales $100 (cr)
Stock $10720 (dr)
Carriage in $1240 (cr)
Fixed Assets $346000 (dr)
Creditors $60000 (cr)
Cash $400 (dr)
Bank Overdraft $1200(dr)
Sales Returns (returns In) $1380 (dr)
Purchases $95000 (cr)
Discounts Received $1400 (dr)
Provision for depreciation $42120 (cr)
Bad debts $560 (dr)
General Expenses $21520 (cr)
Rent $1550 (dr)
Debtors $36700 (dr)
Purchases returns (Returns Out) $1050 (cr)
Discounts allowed $840 (cd)
Carriage Out $1860 (dr)

Additional Information as at 31 March 2007:
-Closing Stock $12200
-General Expenses still Outstanding $80
-Provide for the depreciation of fixed assets charging 10% annually using the reducing balance method.

Required:
a) Re-write the trial balance in the correct form and calculate the firm's capital.
b) A trading and profit and loss account for the year ended 31 March 2007.

Can anyone help me with these please??

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