walkers38
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Jim's showcase is a circus run by Jim. He is at the end of the first year of his business. He has employed a clerk to write up his books which were kept correctly. Jim then prepared the following trial balance which he cannot get to balance. Produce a corrected trial balance for Jim.

Jim's Trial Balance


.....................................................................Dr...........|......Cr...
Leasehold shop premises..........................150,000......|............
Amortisation on lease.................................................|.....3,000
Fixture and fittings.................................... 40,000.......|............
Accumulated dep'n on f+f............................4,000........|............
Vans........................................................20,000.......|............
Accumulated dep'n on vans.........................2,000........|............
Inventories at the end of the year.................12,000.......|............
Closing trade receivables.............................................|....48,000
Closing trade payables...............................10,000.......|............
Bank balance..............................................2,000.......|............
Capital introduced.......................................................| 50,000
Profit for the year........................................................| 39,000
Loan from bank, secured on Jim's house.......................| 160,000
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DJKL
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(Original post by walkers38)
Jim's showcase is a circus run by Jim. He is at the end of the first year of his business. He has employed a clerk to write up his books which were kept correctly. Jim then prepared the following trial balance which he cannot get to balance. Produce a corrected trial balance for Jim.

Jim's Trial Balance


.....................................................................Dr...........|......Cr...
Leasehold shop premises..........................150,000......|............
Amortisation on lease.................................................|.....3,000
Fixture and fittings.................................... 40,000.......|............
Accumulated dep'n on f+f............................4,000........|............
Vans........................................................20,000.......|............
Accumulated dep'n on vans.........................2,000........|............
Inventories at the end of the year.................12,000.......|............
Closing trade receivables.............................................|....48,000
Closing trade payables...............................10,000.......|............
Bank balance..............................................2,000.......|............
Capital introduced.......................................................| 50,000
Profit for the year........................................................| 39,000
Loan from bank, secured on Jim's house.......................| 160,000
Look at what is described and consider whether it ought to be a debit or a credit, e.g. Acc Depreciation is shown as a debit ?????

Try punching the numbers into excel with descriptions and then try switching the obvious errors. Have the two columns on auto sum. Once you do the obvious ones there will still be a difference but you should easily spot which account still needs changed.

The exercise is trying to get you to think of which nominal accounts are naturally debits (assets) and which credits (creditors and capital) and the fact that some may be either.

Sorry cannot really help you more as I would then be doing your homework, but I cut and pasted into excel and solved in about 1 minute, it is not difficult,.
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walkers38
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(Original post by DJKL)
Look at what is described and consider whether it ought to be a debit or a credit, e.g. Acc Depreciation is shown as a debit ?????

Try punching the numbers into excel with descriptions and then try switching the obvious errors. Have the two columns on auto sum. Once you do the obvious ones there will still be a difference but you should easily spot which account still needs changed.

The exercise is trying to get you to think of which nominal accounts are naturally debits (assets) and which credits (creditors and capital) and the fact that some may be either.

Sorry cannot really help you more as I would then be doing your homework, but I cut and pasted into excel and solved in about 1 minute, it is not difficult,.
Thank you it really helps to know this is solvable lol. So far I am 4000 off. But I will see which ones can be listed as both debit and credit.
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DJKL
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(Original post by walkers38)
Thank you it really helps to know this is solvable lol. So far I am 4000 off. But I will see which ones can be listed as both debit and credit.
Divide by 2 and it will be fairly clear.
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