4 Ryk Shau is a sole trader who makes cardboard boxes.

The following balances were

extracted from his books on 31 August 2001.

$
Sales 100 000
Purchases 70 000
trade receievable Debtors 16 000
Creditors 15 000
trade payable
Cash at bank 5 000
Rent and insurance paid 4 000
Machinery at cost 50 000
Rent received 20 000
Stock 1 September 2000 11 000
Drawings 9 000
Capital ?

(a) Using the columns below, prepare Ryk’s trial balance as at 31 August 2001, showing
his Capital account balance.

Ryk Shau
Trial Balance as at 31 August 2001

DR CR
$ $
sales 100,000
........................................................................ .......................... ........................
purchases 70,000
........................................................................ .......................... ........................
Trade receiveable 6000
........................................................................ .......................... ........................

trade payable 15000

........................................................................ .......................... ........................

cash at bank
........................................................................ 5000
.......................... ........................
rent and insurance 4000
........................................................................ .......................... ........................
machinery 50000
........................................................................ .......................... ........................
rent received 20000
........................................................................ .......................... ........................
Stock 1 September 2000 11000
........................................................................ .......................... ........................
drawing 9000
........................................................................ .......................... ........................
capital 80000
........................................................................ .......................... ........................
185000
........................................................................ .......................... ........................

........................................................................ .......................... ........................

185000

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(b) Name two types of error which do not affect the agreement of trial balance totals.

1. compensating error
..................................................................................................................................
error of principle
2. ............................................................................................................................. [2]

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