Question

Assuming that you are recently joined as an Accounting technician in Barka Egg Factory in Muscat. Your duty is
to record and maintain every monetary transaction of an organization. At the end of the year, you have prepared a
Trial balance to check the arithmetic accuracy of the transactions. You are surprised that your Debit balance of OMR
5,800 are more than your Credit Balance. Later you discovered that you have committed so many errors while
recording and posting the transactions.
Required:

a) Prepare a Trial balance showing the above shortage of debit balance.

b) What type of error you have committed while recording and posting the transactions? Explain in detail
atleast any four types of errors which you have committed with an example of each error.

** Students are asked to prepare a trial balance with atleast 30 accounts such as Purchase, Sales, Various
expenses and income etc. (Imaginary figure can be used).

Answer 1

Trial Balance

Name of accounts	Debit	Credit
Purchase	500000
Sales return	10000
Purchase return		15000
Sales		700000
Salary	50000
Commision	4000
Rent	20000
Rent received		5000
Opening stock	60000
Fuel,Oil	8000
Electrictiy & Power	25000
Bank Balance	95000
Cah in hand	120000
Drawings	4000
Capital		260000
creditors		41000
Debtors	59800
Bills payable		12000
Bills receivable	14000
Commision received		3200
Income tax	20000
Miscellaneous income		6500
Furniture	40000
Machinery	50000
Rates	1000
Life insurance premium	6000
Investment	40000
Adevertisement	3500
Discount Received		1700
Loan's from bank		80100
	1130300	1124500
Total

Reason for debit balance overlapping the credit balance with 5800.

1. Wrongly entered amt. 1000 in debtors while in sales ledger it is 100, overlapped by 900

2. Wrongly entered advertisement 3500 while actually paid 2000, overlapped by 1500

3.one supplier should be credite, wrongly it was entered into debtors side by 800

4.Discount received actual 2700 while entered it 1700

5.interest received on saving accounts forgot to enter on credti ledger by 200

6.Purchase return should be 15300 while entered it as 15000 only on credit side while debit side it is 15300