Waec Model Questions Vol1 2020 Financial Accounting Question 5

The following ledger account balances were extracted from the general ledger of XYZ Trading Ltd. at 31 December 2022. | Account | Debit (₦) | Credit (₦) | |-----------------------|-----------|------------| | Cash | 180,000 | – | | Bank | 250,000 | – | | Trade Receivables | 320,000 | – | | Inventory – Opening | 210,000 | – | | Inventory – Closing | – | 240,000 | | Purchases | 560,000 | – | | Sales | – | 950,000 | | Salaries Expense | 120,000 | – | | Rent Expense | 45,000 | – | | Capital | – | 500,000 | | Drawings | 80,000 | – | | Miscellaneous Income | – | 30,000 | Using the information above, answer the following: a) Prepare a trial balance as at 31 December 2022. b) Using the trial balance, calculate the gross profit for the year. c) The total of the debit column of the trial balance you prepared is ₦ 1,865,000 while the credit column totals ₦ 1,770,000. Identify the most likely type of error that could have produced this difference and explain how it would be rectified.