Cambridge IGCSE and O Level Accounting

Worksheet 1.3 answers

1 True or false
A trial balance is a list of the assets and liabilities on a certain
false
date.
A trial balance is a list of balances in the ledger on a certain date. true
A trial balance proves the arithmetical accuracy of the double
true
entry book-keeping.
A trial balance proves that the double entries in the ledger are
false
correct.

2 Debit column Credit column

Capital ✓
Drawings ✓
Carriage inwards ✓
Carriage outwards ✓
Purchases returns ✓
1
Loan from ADC ✓
Loan interest ✓
Rent receivable ✓

3 Name of error
A transaction has been completely omitted from the accounting error of
records. omission
An incorrect figure was used when a transaction was first error of
entered in the accounting records. original entry
A transaction was entered using the correct amount and on the error of
correct side but in the wrong class of account. principle
Two or more errors were made which cancelled each other out. compensating
errors
A transaction was entered using the correct amount in the error of
correct accounts but the entry was made on the wrong side of complete
each account. reversal
A transaction was entered using the correct amount and on the error of
correct side but in the wrong account of the same class. commission

© Cambridge University Press 2018

Cambridge IGCSE and O Level Accounting

4 Error 2 The total of the credit column will be $159 greater than the
total of the debit column.

Error 3 The total of the debit column will be $800 greater than the
total of the credit column.

5 Amit
Trial balance at 31 May 20–8
Dr Cr
$ $
Sales 176 000
Purchases 110 000
Carriage inwards   5 040
Sales returns   1 650
Purchases returns      950
Fixtures and fittings 48 000
Motor vehicles 14 000
Inventory 21 000
2
Trade receivables 14 000
Trade payables 11 500
Balance at bank   2 385
Cash   1 720
Wages 15 300
Rent 22 000
Electricity   3 260
General expenses   4 670
Drawings 14 000
Capital 88 575
277 025 277 025

© Cambridge University Press 2018