Page 89 - ISCDEBK-XI

13.6 Double Entry Book Keeping—ISC XI

Illustration 2.
From the following Trial Balance (containing errors), prepare a correct Trial Balance:

Ledger Balances Dr. (`) Cr. (`)
Purchases (Not Adjusted) ..................................................................................................................................... 60,000 ...
Reserve ................................................................................................................................................................ 20,000 ...
Sales ................................................................................................................................................................ ... 1,00,000
Purchases Return ..................................................................................................................................................... 1,000 ...
Sales Return ............................................................................................................................................................... ... 2,000
Opening Stock .......................................................................................................................................................... 30,000 ...
Closing Stock ............................................................................................................................................................ ... 40,000
Expenses ................................................................................................................................................................ ... 20,000
Outstanding Expenses .......................................................................................................................................... 2,000 ...
Bank Balance ............................................................................................................................................................. 5,000 ...
Fixed Assets ............................................................................................................................................................... 50,000 ...
Creditors ................................................................................................................................................................ ... 30,000
Debtors ................................................................................................................................................................ ... 80,000
Capital ................................................................................................................................................................ 94,000 ...
Suspense A/c ............................................................................................................................................................. 10,000 ...
Total 2,72,000 2,72,000

Solution: TRIAL BALANCE
as on ...
Heads of Accounts L.F. Dr. (`) Cr. (`)
Purchases (Adjusted) ..................................................................................................................................... 50,000 ...
Reserve ....................................................................................................................................................... ... 20,000
Sales ....................................................................................................................................................... ... 1,00,000
Purchases Return ............................................................................................................................................ ... 1,000
Sales Return ...................................................................................................................................................... 2,000 ...
Closing Stock ................................................................................................................................................... 40,000 ...
Expenses ....................................................................................................................................................... 20,000 ...
Outstanding Expenses ................................................................................................................................. ... 2,000
Bank Balance .................................................................................................................................................... 5,000 ...
Fixed Assets ...................................................................................................................................................... 50,000 ...
Creditors ....................................................................................................................................................... ... 30,000
Debtors ....................................................................................................................................................... 80,000 ...
Capital ....................................................................................................................................................... ... 94,000
Total 2,47,000 2,47,000

Note: Adjusted Purchases = Opening Stock + Purchases – Closing Stock
= ` 30,000 + ` 60,000 – ` 40,000 = ` 50,000.