These questions cover extracting a trial balance, tracing differences, naming errors the totals cannot reveal, and recalculating totals after corrections. They run from easy to harder. All businesses and figures are fictional, and amounts are in RM.
Work on paper first, with the debit and credit columns ruled out. Open each answer only after your own attempt, and compare each line of working, not only the final figure. The lessons are in trial balance and error limits.
Questions
1. (Easy) The bank account of Ria Traders has debit entries of RM 8,200 and RM 3,150, and credit entries of RM 2,400 and RM 1,850. Find the balance and say which trial balance column it goes in.
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Debit total: 8,200 + 3,150 = 11,350. Credit total: 2,400 + 1,850 = 4,250. Balance: 11,350 − 4,250 = RM 7,100. The debit side is larger, so it goes in the debit column.
2. (Easy) The sales account of Ria Traders has credit entries of RM 6,400, RM 5,100 and RM 4,700, and a debit entry of RM 650 for sales returns. Find the balance and the column.
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Credit total: 6,400 + 5,100 + 4,700 = 16,200. Debit total: 650. Balance: 16,200 − 650 = RM 15,550. The credit side is larger, so it goes in the credit column.
3. (Easy) Prepare a trial balance for Dian Tailoring from these balances: machinery 9,500; inventory 2,200; trade receivables 1,800; bank 1,150; purchases 7,300; rent 1,200; drawings 2,000; capital 12,000; sales 11,800; trade payables 1,350. State the totals.
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Debit column: machinery 9,500, inventory 2,200, trade receivables 1,800, bank 1,150, purchases 7,300, rent 1,200, drawings 2,000.
9,500 + 2,200 + 1,800 + 1,150 + 7,300 + 1,200 + 2,000 = RM 25,150.
Credit column: capital 12,000, sales 11,800, trade payables 1,350.
12,000 + 11,800 + 1,350 = RM 25,150. The columns agree.
4. (Medium) A trial balance has debits of RM 61,300 and credits of RM 60,880. Which side is short, by how much, and what kind of error could explain it?
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61,300 − 60,880 = 420. The credit side is short by RM 420. A credit entry of RM 420 may have been omitted (a one-sided entry), or a debit balance may be overstated by RM 420.
5. (Medium) A trial balance shows debits of RM 44,700 and credits of RM 45,300. A rent payment of RM 300 was entered as a credit in the rent account instead of a debit. Show how the totals change when corrected.
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The difference is 45,300 − 44,700 = 600, and half of it is 300, which matches the misplaced item.
Move the RM 300 from the credit column to the debit column. Debit: 44,700 + 300 = RM 45,000. Credit: 45,300 − 300 = RM 45,000. The columns now agree.
6. (Medium) Name each error, say whether the trial balance would still agree, and state the effect on profit.
- (a) Insurance of RM 480 was debited to the rent account.
- (b) A refrigerator costing RM 2,600 was debited to the purchases account.
- (c) A credit sale of RM 1,150 was recorded as RM 1,510 in both the sales and receivables accounts.
- (d) A payment of RM 190 to a supplier was debited to bank and credited to trade payables.
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(a) Error of commission, both are expenses. The trial balance agrees. Profit is unaffected.
(b) Error of principle, an asset treated as an expense. The trial balance agrees. Profit is understated by RM 2,600 before depreciation.
(c) Error of original entry. The trial balance agrees because both sides use RM 1,510. Sales are overstated by 1,510 − 1,150 = RM 360, so profit is overstated by RM 360.
(d) Error of reversal. The trial balance agrees. Profit is unaffected, but the bank and payables balances are wrong.
7. (Medium) A trial balance agrees at RM 27,640. Two errors are found: a credit purchase of RM 760 was omitted from both books, and wages of RM 640 were debited to the rent account. Give the corrected totals.
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The wages correction moves RM 640 between two debit balances, so the totals do not change.
The omission adds RM 760 to both columns: 27,640 + 760 = RM 28,400 on each side.
8. (Medium) Two errors are found in the accounts of Bayu Motors: a delivery van costing RM 8,400 was debited to motor expenses, and water of RM 360 was debited to electricity. State the effect on profit.
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The van is an error of principle. Expenses are overstated by RM 8,400, so profit is understated by RM 8,400 before depreciation.
The water error is commission between two expenses, so it has no effect on profit.
Total effect: profit understated by RM 8,400.
9. (Harder) A trial balance shows debits of RM 47,350 and credits of RM 47,440. The difference is divisible by 9. The wages balance of RM 5,430 was copied into the trial balance as RM 5,340. Show that this explains the difference and give the corrected total.
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Difference: 47,440 − 47,350 = 90, and 90 = 9 × 10.
Wages are RM 5,430, copied as RM 5,340, so the debit column is short by 5,430 − 5,340 = 90. That is exactly the difference.
Corrected debit total: 47,350 + 90 = RM 47,440. Both columns are RM 47,440.
10. (Harder) The trial balance of Rimba Garage disagrees.
| Account | Debit (RM) | Credit (RM) |
|---|---|---|
| Workshop | 40,000 | |
| Tools | 6,500 | |
| Inventory | 3,800 | |
| Trade receivables | 4,600 | |
| Bank | 2,980 | |
| Purchases | 12,100 | |
| Wages | 9,400 | |
| Rent | 3,000 | |
| Drawings | 4,500 | |
| Capital | 55,000 | |
| Sales | 30,500 | |
| Trade payables | 1,760 | |
| Totals | 86,880 | 87,260 |
Three errors are found.
- (i) A cheque of RM 380 paid to a supplier was credited to bank, but the debit in trade payables was omitted.
- (ii) Tools costing RM 1,200 were debited to purchases.
- (iii) A credit sale of RM 950 was left out of both books.
Correct the balances, give the new totals and state the effect on profit.
Show answer
Debit total is 86,880 and credit total is 87,260. The difference is 87,260 − 86,880 = RM 380, with the debit side short.
(i) Debit Trade payables RM 380. Payables fall from 1,760 to 1,380. The credit column falls to 86,880 and now equals the debit column.
(ii) Debit Tools 1,200, credit Purchases 1,200. Tools become 7,700 and purchases become 10,900. The totals do not change.
(iii) Debit Trade receivables 950, credit Sales 950. Receivables become 5,550 and sales become 31,450. Each column rises by 950.
Corrected debit column: 40,000 + 7,700 + 3,800 + 5,550 + 2,980 + 10,900 + 9,400 + 3,000 + 4,500 = RM 87,830.
Corrected credit column: 55,000 + 31,450 + 1,380 = RM 87,830.
Profit: error (i) has no effect on profit. Error (ii) overstated expenses by RM 1,200 and error (iii) understated sales by RM 950. Profit is understated by 1,200 + 950 = RM 2,150 before depreciation.
11. (Harder) A classmate says: “My trial balance agrees at RM 36,000, so my ledger is correct and my profit must be right.” Write a reply of two or three sentences with one example.
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Sample reply: “An agreeing trial balance shows that total debits equal total credits, nothing more. For example, if a machine costing RM 2,000 was debited to repairs, the totals would still agree at RM 36,000, but expenses would be overstated and profit understated by RM 2,000 before depreciation. Errors of omission, commission, principle, original entry, compensating errors and reversals would all stay hidden.”
If you got these wrong
Match the type of slip to the lesson that explains it.
| What went wrong | Questions | Lesson |
|---|---|---|
| Balance or column wrong | 1, 2, 3 | Extract a trial balance from ledger balances |
| Difference traced to the wrong side or item | 4, 5, 9 | Identify errors a trial balance can reveal |
| Error type or profit effect misnamed | 6, 8 | Explain an error that does not break equality |
| Corrected totals wrong | 7, 10 | Recalculate a total after a posting correction |
| Conclusion claims too much | 11 | Avoid treating agreement as proof of accuracy |
The trial-balance and error detective lets you try a fresh scenario for any of these. Record each slip in the mistake log and retest queue and the percentage-base explorer can help you size an error against its total. To keep going, return to the module overview or read about online one-to-one Accounting tuition.