[Drewbi]

I've been asked to correct a trial balance for my bookkeeping class; and as a bookkeeping major, this should be simple. But I've been working on this thing for the last two days, and I've come up with the same answer the last two nights: Debits of 22900 and Credits of 23160. I'll post what the book presents, plus my attempts at fixing this thing.

Trial Balance

Office sales Cr. 5720
Cash Dr. 3260
A/R Dr. 5660
Equipment Dr. 8400
AP Cr. 4160
Capital Cr. 11560
W/D Cr. 700
Wage Expense Dr. 2600
Rent Expense Dr. 940
Utilities Expense Dr. 26
Office Supplies Dr. 120
Prepaid Rent Dr. 180

The Errors:

1. 200 debit to Withdrawals was posted as credit
2. Withdrawals was listed on the trial balance as a credit
3. A Note Payable Account with a credit balance of 2,400 was not listed on the trial balance.
4. The pencil footings for Accounts Payable were debits of 5,320 and credits of 8,800
5. A debit of 180 to prepaid rent was not posted
6. Office Supplies bought for 60 was posted as a credit to supplies.
7. A debit of 120 to accounts receivable was not posted
8. A cash payment of 420 was credited to cash for 240
9. The pencil footing of the credits to Cash was overstated by 400
10. The utilities expense of 260 was listed in the trial balance as 26.

My Fixings:
1 & 2: Change W/D to a Dr balance of 900 (The original 700+200 errored posting)
3. Added a N/P Account with a Cr. Of 2400
4. Subtracted 5320 from 8800 to give me a new Cr balance of 3480 to A/P.
5. Added another 180 to Prepaid Rent to account for the missed posting.
6. Added a 60 Dr to Office supplies to change the Cr error.
7. Added the 120 Dr to A/R to give me a new balance of 5780 (5660+120)
8. I did this complicated, first I debited Cash for 240, to give me a 3500 balance, then credited cash for the proper 420 amount, giving me a new balance of 3080.
9. Debited cash for 400, to correct the overstated credits of 400, new balance 3480 Dr.
10. Debited Utilities for 234 (260-26) to bring it to the proper 260 balance.

My new Trial Balance

Office sales Cr. 5720
Cash Dr. 3480
A/R Dr. 5780
Equipment Dr. 8400
AP Cr. 3480
Capital Cr. 11560
Notes Payable Cr. 2400
W/D Dr. 900
Wage Expense Dr. 2600
Rent Expense Dr. 940
Utilities Expense Dr. 260
Office Supplies Dr. 180
Prepaid Rent Dr. 360
Cr. 22900 Dr. 23160
Difference: 260

Where am I going wrong? My text has maybe three paragraphs on the subject and provides no examples of the errors found in my problem.

(This isn't for a grade, but for the experience--I figure I'll have to do this more later on in my major.)

[rehmanvohra]

My Fixings:
1 & 2: Change W/D to a Dr balance of 900 (The original 700+200 error posting)
3. Added a N/P Account with a Cr. Of 2400
4. Subtracted 5320 from 8800 to give me a new Cr balance of 3480 to A/P.
5. Added another 180 to Prepaid Rent to account for the missed posting.
6. Added a 60 Dr to Office supplies to change the Cr error.
7. Added the 120 Dr to A/R to give me a new balance of 5780 (5660+120)
8. I did this complicated, first I debited Cash for 240, to give me a 3500 balance, then credited cash for the proper 420 amount, giving me a new balance of 3080.
9. Debited cash for 400, to correct the overstated credits of 400, new balance 3480 Dr.
10. Debited Utilities for 234 (260-26) to bring it to the proper 260 balance.

This where you were wrong:

1 Withdrawals shown as a credit balance when corrected a first debit will eliminate the wrong credit and second will show the correct amount.
2. W/d credited by 200 will also have a double effect. The corrected balance will be 1100
6. This entry will also have a double effect. Correct balance 240
8. The correction will reduce the cash balance by 180, - 3260 - 180 = 3080
9. This will increase the cash balance by 400 - corrected balance now is 3480

Revised trial balance
Office sales Cr. 5720
Cash Dr. 3480
A/R Dr. 5780
Equipment Dr. 8400
AP Cr. 3480
Capital Cr. 11560
Notes Payable Cr. 2400
W/D Dr. 1100
Wage Expense Dr. 2600
Rent Expense Dr. 940
Utilities Expense Dr. 260
Office Supplies Dr. 240
Prepaid Rent Dr. 360
Cr. 23160 Dr. 23160

[Drewbi]

Now that I'm able to step back and see how you corrected it, the double effect makes perfect sense.

Thanks you.