Neco 2021 Financial Accounting Question 5

Practice essay / theory question 5 from the 2021 Neco Financial Accounting examination. This question covers Trial Balance, Adjusting Errors .

Neco 2021 Financial Accounting Essay / Theory

Topics: Trial Balance Adjusting Errors

Question 5 NECO • 2021 • FINANCIAL_ACCOUNTING • essay

The ledger balances of Alpha Traders at 31 December 2023 are given below. All amounts are in Naira. Cash Dr 150,000 Accounts Receivable Dr 80,000 Inventory Dr 120,000 Equipment Dr 200,000 Cost of Goods Sold Dr 180,000 Salaries Expense Dr 70,000 Rent Expense Dr 30,000 Drawings Dr 20,000 Accumulated Depreciation Cr 50,000 Accounts Payable Cr 90,000 Loans Payable Cr 150,000 Capital Cr 250,000 Sales Revenue Cr 300,000 Prepare a trial balance and answer the following questions.

( a )

List the trial balance showing total debits and total credits.

( b )

State the amount of discrepancy and indicate whether the trial balance is balanced.

( c )

Suggest one plausible posting error that could have caused the discrepancy and propose the necessary adjusting entry to correct it.

( d )

After posting the adjusting entry, prepare the corrected trial balance totals.

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This is Neco 2021 Financial Accounting Question 5. It is one of the essay questions from the 2021 Neco Financial Accounting examination.

The question covers Trial Balance, Adjusting Errors .

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