Ramniwas, a book-keeper, taking out a trial balance as on 31st March 2005, found that its debit and credit columns did not agree. He proceeded to check the entries and discovered the following errors: A credit sale of Rs. 1,000 to Ajay had been correctly entered in the Sales Book but Ajay’s Account had been debited with Rs. 100 only.

The total of the Bills Payable Book Rs. 5,000 had been posted to the credit of Bills Receivable Account.

Rs. 2,500 paid to Ram had been wrongly posted to Shyam.

Rs. 100 owing by a customer had been omitted from the list of debtors.

The discount column of the Cash Book representing discount allowed to customer has been over-added by Rs. 10.

Goods worth Rs. 100 taken by the proprietor omitted to be recorded in the books.

Depreciation on furniture Rs. 100, had not been posted to Depreciation Account.

The total of Sales Book had been added Rs. 1,000 short.

Which of the above errors caused the totals of the Trial Balance to disagree and by how much did the totals differ?

Ramniwas Bookkeeper

A. The errors that caused the totals of the Trial Balance to disagree are:

1. A credit sale of Rs. 1,000 to Ajay had been correctly entered in the Sales Book but Ajay’s Account had been debited with Rs. 100 only.

2. The discount column of the Cash Book representing discount allowed to customer has been over-added by Rs. 10.

3. The total of Sales Book had been added Rs. 1,000 short.

B. The totals disagreed by:

Understated debit    Rs. 900

Overstated debit              (10)

Understated credit     (1,000)

Totals disagreed by   Rs. 110

Explanation:

a) Correction of Errors on the Trial Balance, March 31:

Account Title                             Debit       Credit

Account receivable (Ajayi's)   Rs. 900

Accounts Payable                                    Rs. 5,000

Accounts Receivable                5,000

Shyam                                       2,500

Ram                                                               2,500

Cash Discount Allowed                                     10

Drawings                                      100

Inventory                                                          100

Depreciation Expense                100

Accumulated Depreciation                             100

Sales Revenue                                             1,000

Totals                                Rs. 8,600     Rs.  8,710

b) Credit side of the Trial Balance was greater by Rs. 110 (Rs. 8,710 - Rs. 8,600).

answer; im, thinking it should be (7yrs)///plz check first.good luck