Bank incorrect trial balance is R13 650.00 Dr When recording its incorrect trial balance, should I subtract…

Question

Bank incorrect trial balance is R13 650.00 Dr When recording its incorrect trial balance, should I subtract (13 650.00 − 1 002. 44) the bank from the under-cast amount of stationery or just record 13 650.00 on the incorrect trial balance as it is/ given ?

ScanSolve AI Tutor · Accepted Answer

When recording the incorrect trial balance, you should always enter the figures exactly as they are given in the unadjusted trial balance. Step 1: Record the given Bank balance in the "Incorrect Trial Balance" column. The problem states: "Bank incorrect trial balance is R13 650.00 Dr". This is the figure you should use. Bank (Incorrect Trial Balance) = R13 650.00 Dr Step 2: Understand the purpose of the "Incorrect Trial Balance" column. This column represents the trial balance before any errors or adjustments are considered. The "under-cast amount of stationery" is an error that will be corrected in a separate "Adjustments" column, not by altering the initial "Incorrect Trial Balance" figure for Bank. Therefore, you should just record R13 650.00 on the incorrect trial balance as it is given.

Bank incorrect trial balance is R13 650.00 Dr When recording its incorrect trial balance, should I subtract (13 650.00 - 1 002. 44) the bank from the under-cast amount of stationery or just record 13 650.00 on the incorrect trial balance as it is/ given ?

Answer

Step-by-step solution

Record the given Bank balance in the "Incorrect Trial Balance" column.

Understand the purpose of the "Incorrect Trial Balance" column.

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