BASIC ACCOUNTING FOR HNTEC IN BUSINESS AND FINANCE (Rev No.

2; July 2020)

Topic 4: Trial Balance

1. Anna extracted the following balances from his ledger on 30 June 2019. You are required to
prepare a Trial Balance as at that date.
$ $
Purchases 53,400 Duty on purchases 1,350
Sales 68,500 Stationery 800
Drawings 3,000 Debtors 11,300
Purchases Returns 400 Creditors 13,000
Sales Returns 300 Motor vehicles 20,000
Discount received 600 Office equipment 10,500
Discount allowed 750 Carriage inwards 2,600
Commission received 1,370 Carriage outwards 1,650
Rent 4,800 Cash at bank 4,550
Wages 10,800 Capital 56,000
General expenses 2,900 Stock as at 1 July 2018 11,170

2. Record the following transactions in the Ledger including two-column cash book of Michael Lee
for the month of March and prepare a Trial Balance as at 31 March 2018.
March $
1 Michael Lee started business by depositing $30,000 in the bank
and a van valued at $20,000 into the business.
2 Bought office equipment paid by cheque 8,000
3 Bought fittings and fixtures paid by cheque 5,000
6 Bought goods by cheque 8,500
9 Bought goods on credit from David Teo 6,345
11 Cash sales banked in. 2,345
13 Sold goods on credit to Lim Ang 675
Returned defective goods to David Teo 450
15 Paid David Teo by cheque. 3,000
18 Withdrew cash from bank for office use 1,000
20 Paid cash for rent 500
23 Received cheque from Lim Ang 400
25 Paid general expenses by cash 225
28 Bought goods on credit from David Teo 2,000
Cash sales banked in 10,000
30 Sold goods on credit to Lim Ang 1,245
30 Withdrew cash from bank for office use 1,200
31 Paid wages in cash 1,000
Paid electricity by cash 215

HNA&SHR Page | 1
BASIC ACCOUNTING FOR HNTEC IN BUSINESS AND FINANCE (Rev No. 2; July 2020)

3. Marsha, an inexperienced book-keeper, prepared the following Trial Balance. It contained a

number of errors and you are required to redraft the Trial Balance as at 31 December 2017.

Particulars Debit Credit

Stock 1 January 2017 9,800
Purchases 8,765
Sales 12,345
Return inwards 1,250
Return outwards 800
Duty on purchases 875
Carriage inwards 900
Carriage outwards 1,230
Commission received 1,450
Insurance 480
Advertising 3,450
Debtors 2,345
Creditors 5,915
Rent 6,000
Office equipment 12,000
Discount received 400
Discount allowed 265
Motor vehicles 25,000
Wages 8,000
Cash in hand 1,150
Bank overdraft 3,200
Loans 20,000
Drawings 600
Capital 38,000
TOTAL 81,810 82,410

HNA&SHR Page | 2
BASIC ACCOUNTING FOR HNTEC IN BUSINESS AND FINANCE (Rev No. 2; July 2020)

4. On 1 April 2018, the books Nayla show the following Capital invested:

Cash in hand $400

Cash at bank $1,200

Transactions for the month of April 2018 are as follows:

April $
2 Paid Jack by cheque to settle invoice $1,000 less 10% discount.
Received cheque $600 from Raymond to settle an invoice $650.
3 Paid electricity by cash. 200
4 Bought goods on credit from Jack. 1,300
12 Bought office equipment for office use, paid by cheque. 1,000
21 Sold goods on credit Raymond. 1,200
25 Cash sales 2,100
29 Transferred cash from office to bank 2,000
30 Received cheque for commission. 800

You are required to prepare the:

a) Three-column cash book

b) Ledger accounts.

c) Trial Balance as at 30 April 2018.

HNA&SHR Page | 3
BASIC ACCOUNTING FOR HNTEC IN BUSINESS AND FINANCE (Rev No. 2; July 2020)

5. Record the following transactions in the Ledger including two-column cash book of David Ang
for the month of May and prepare a Trial Balance as at 31 May 2018.
May $
1 David Ang commenced business by depositing $20,000 in the
bank, cash in hand $1,000 and a motor vehicle valued at $10,000
into the business.
3 Bought machinery paid by cheque 6,000
5 Bought motor vehicle paid by cheque 3,000
7 Bought goods by cheque 6,000
10 Bought goods on credit from Lisa 6,000
12 Cash sales. 2,500
14 Sold goods on credit to Dillah 850
15 Returned defective goods to Lisa 200
16 Paid Lisa by cheque $5,600 and received discount $200.
19 Withdrew cash from office and banked in. 300
20 Received cheque from Dillah 600
25 Cash sales banked in 10,000
30 Sold goods on credit to Dillah 1,300
31 Paid rent in cash 1,500

HNA&SHR Page | 4
BASIC ACCOUNTING FOR HNTEC IN BUSINESS AND FINANCE (Rev No. 2; July 2020)

6. Below are the transactions from the books of Razin during September 2019. You are required to
prepare the Three-column cash book, ledger accounts and Trial Balance as at 30 September 2019.

Sept $
1 Cash at bank 800
Cash in hand 2,000
3 Paid Zahin by cheque to settle invoice $800 less 10% discount.
5 Received cheque $500 from Zul to settle an invoice $550.
6 Paid rent by cash. 100
8 Bought goods on credit from Zahin. 1,000
14 Bought office furniture for office use, paid by cheque. 1,600
20 Sold goods on credit Zul. 800
24 Cash sales 2,400
26 Transferred cash from office to bank 1,600
28 Received cheque for commission. 300

HNA&SHR Page | 5