The trial balance of XYZ Ltd for the year ended 31 December shows the following balances (in naira):

Debit side:
- Cash $\₦95,000$
- Accounts Receivable $\₦60,000$
- Inventory $\₦70,000$

Credit side:
- Accounts Payable $\₦50,000$
- Sales Revenue $\₦150,000$
- Capital $\₦30,000$
- Interest Payable $\₦5,000$

The total debits equal $\₦225,000$ and total credits equal $\₦235,000$. It is known that one of the credit balances has been posted on the wrong side. Identify the misposted account and state the corrected total of each side after moving the amount to the proper side.

Question

The trial balance of XYZ Ltd for the year ended 31 December shows the following balances (in naira):

Debit side:
- Cash $\₦95,000$
- Accounts Receivable $\₦60,000$
- Inventory $\₦70,000$

Credit side:
- Accounts Payable $\₦50,000$
- Sales Revenue $\₦150,000$
- Capital $\₦30,000$
- Interest Payable $\₦5,000$

The total debits equal $\₦225,000$ and total credits equal $\₦235,000$. It is known that one of the credit balances has been posted on the wrong side. Identify the misposted account and state the corrected total of each side after moving the amount to the proper side.

Accepted Answer

Interest Payable; each side $\₦230,000$

Neco Model Questions Vol1 2025 Financial Accounting Question 1

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