Page 90 - ISCDEBK-XI

Trial Balance 13.7

Illustration 3.
Shri S.K. Sharma extracted the following Trial Balance from his books on 31st March, 2022:

Heads of Accounts Dr. (`) Cr. (`)
Capital ..................................................................................................................................................................... ... 14,90,000
Drawings ..................................................................................................................................................................... 6,00,000 ...
Stock (1st April, 2021) ................................................................................................................................................. 5,00,000 ...
Trade Debtors ................................................................................................................................................................ 5,90,000 ...
Trade Creditors .............................................................................................................................................................. ... 5,36,800
Fixed Assets .................................................................................................................................................................... 3,06,000 ...
Purchases ..................................................................................................................................................................... 10,28,000 ...
Sales ..................................................................................................................................................................... ... 14,92,000
Miscellaneous Expenses ............................................................................................................................................ 1,72,000 ...
Discount Received ....................................................................................................................................................... ... 8,000
Returns Outward .......................................................................................................................................................... ... 8,000
Cash at Bank ................................................................................................................................................................... 3,00,000 ...
Cash in Hand .................................................................................................................................................................. 32,000 ...
Total 35,28,000 35,34,800
Subsequently, the following errors and omissions were discovered:
(i) A purchase of fixed assets costing ` 64,000 had been debited to Purchases Account.
(ii) A sales invoice of ` 30,000 entered in the Sales Book had not been posted to the customer’s
personal account.
(iii) A credit note for ` 6,000 issued by Shri S.K. Sharma to a customer had been completely
omitted from the books.
(iv) A credit balance of ` 3,200 in the purchases ledger had been omitted from the Trial Balance.
(v) The Sales Book was undercast by ` 20,000 on 31st March, 2022.
Draw up a correct Trial Balance.
Solution: TRIAL BALANCE as on 31st March, 2022

Heads of Accounts L.F. Dr. (`) Cr. (`)
Capital .......................................................................................................................................................... ... 14,90,000
Drawings .......................................................................................................................................................... 6,00,000 ...
Stock (1st April, 2021) ...................................................................................................................................... 5,00,000 ...
Trade Debtors: ` (5,90,000 + 30,000 – 6,000) (Notes 2 and 3) ........................................................... 6,14,000 ...
Trade Creditors: ` (5,36,800 + 3,200) (Note 4) ......................................................................................... ... 5,40,000
Fixed Assets: ` (3,06,000 + 64,000) (Note 1) ............................................................................................. 3,70,000 ...
Purchases: ` (10,28,000 – 64,000) (Note 1) ............................................................................................... 9,64,000 ...
Sales: ` (14,92,000 + 20,000) (Note 5) ........................................................................................................ ... 15,12,000
Miscellaneous Expenses ................................................................................................................................. 1,72,000 ...
Discount Received ............................................................................................................................................ ... 8,000
Returns Outward ............................................................................................................................................... ... 8,000
Cash at Bank ........................................................................................................................................................ 3,00,000 ...
Cash in Hand ....................................................................................................................................................... 32,000 ...
Returns Inward (Note 3) .................................................................................................................................. 6,000 ...
Total 35,58,000 35,58,000