Scribd
Upload
582 views

ABM+2 Learning+Material+No.+4

The document provides a trial balance for Ramon Delivery Services that does not balance. It then lists errors found in the company's record keeping, including incorrect account balances and postings. To correct the trial balance, the errors must be adjusted. The solution provides a corrected trial balance that balances the debits and credits after adjusting for the errors in the company's accounting records.

Uploaded by

Gelesabeth Garcia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
582 views

ABM+2 Learning+Material+No.+4

The document provides a trial balance for Ramon Delivery Services that does not balance. It then lists errors found in the company's record keeping, including incorrect account balances and postings. To correct the trial balance, the errors must be adjusted. The solution provides a corrected trial balance that balances the debits and credits after adjusting for the errors in the company's accounting records.

Uploaded by

Gelesabeth Garcia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

LEARNING MATERIAL NO.

4
Fundamentals of Accountancy, Business, and Management 2
September 22, 2020
Mr. Roneil M. Wenceslao

CORRECTNG A TRIAL BALANCE

DRILL NO. 7

Below is the trial balance of Ramon Delivery Services, which does not balance:

Ramon Delivery Services


Trial Balance
December 31, 2017

Cash P110,400
Accounts Receivable 284,600
Supplies 66,400
Prepaid Insurance 40,000
Office Equipment 526,800
Notes Payable P130,000
Accounts Payable 195,400
Ramon, Capital 297,200
Ramon, Withdrawals 100,000
Delivery Revenues 821,400
Salaries Expense 348,700
Advertising Expense 12,200 ________
Total P1,389,100 P1,544,000

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS, AND MANAGEMENT 2 II WENCESLAO 1


LEARNING MATERIAL NO. 4
Fundamentals of Accountancy, Business, and Management 2
September 22, 2020
Mr. Roneil M. Wenceslao

The following information is obtained from a review of the record keeping process:
a. An account receivable for P19,600 was incorrectly added as P16,900 when
computing the balance of the Accounts Receivable account.
b. A debit posting from the journal for P5,200 is missing from the Advertising
Expense account.
c. A credit posting of P15,000 to Notes Payable should have been made to
Accounts Payable.
d. A debit posting of P34,000 to Supplies was incorrectly posted as P3,400.
e. Credits to the ledger Accounts Payable account were under-footed by P60,000.
f. Revenues are overstated in the ledger account by P40,000.
g. A credit posting for Repair Revenues from the journal in the amount of P63,600 is
missing.
h. Supplies acquired in the amount of P17,400 have been incorrectly posted to the
Office Equipment account.

Required: Prepare a corrected trial balance

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS, AND MANAGEMENT 2 II WENCESLAO 2


LEARNING MATERIAL NO. 4
Fundamentals of Accountancy, Business, and Management 2
September 22, 2020
Mr. Roneil M. Wenceslao

SOLUTION/ANSWER KEY

Ramon Delivery Services


Corrected Trial Balance
January 31, 2012

Cash P110,400
Accounts Receivable 287,300
Supplies 114,400
Prepaid Insurance 40,000
Office Equipment 509,400
Notes Payable P115,000
Accounts Payable 270,400
Lopez, Capital 297,200
Lopez, Withdrawals 100,000
Delivery Revenues 845,000
Salaries Expense 348,700
Advertising Expense 17,400 _________
Totals P1,527,600 P1,527,600

Total points = 3 pts heading + 1 pt per amount including the totals = 17 + 3 = 20/20

END

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS, AND MANAGEMENT 2 II WENCESLAO 3

You might also like