A company's trial balance as at 31st December, 2022 is as follows:

Assets:
Cash ₦10,000
Debtors ₦20,000
Stock ₦30,000
Equipment ₦40,000
Total ₦100,000

Liabilities:
Creditors ₦10,000
Capital ₦90,000
Total ₦100,000

What is the correct treatment for the following error in the trial balance?

A machine costing ₦10,000 was purchased and debited to the machine account but credited to the cash account.

Question

A company's trial balance as at 31st December, 2022 is as follows:

Assets:
Cash ₦10,000
Debtors ₦20,000
Stock ₦30,000
Equipment ₦40,000
Total ₦100,000

Liabilities:
Creditors ₦10,000
Capital ₦90,000
Total ₦100,000

What is the correct treatment for the following error in the trial balance?

A machine costing ₦10,000 was purchased and debited to the machine account but credited to the cash account.

Accepted Answer

Debit the cash account by ₦10,000 and credit the machine account by ₦10,000

Post Utme Abu 2017 Accounting Question 38