Republic of the Philippines

MARINDUQUE STATE COLLEGE

COLLEGE OF ACCOUNTANCY, BUSINESS & GOVERNANCE
Institute of Accountancy, Business and Tourism
Main Campus: Boac / Branches: Santa Cruz • Torrijos • Gasan
Panfilo P. Manguera Sr. Rd., Tanza, Boac, Marinduque 4900
Tel. No.: (042) 332-2028 Email Address: sucpresident.msc@gmail.com
Website: www.marinduquestatecollege.edu.ph

Name: Analyn Grace Pascual Date: 11/16/2023

Course/Year and Section: BSBA FM 1C Score: ______________

Assignment No. 4

Problem #1: Effects of Errors on the Trial Balance

Required:

Explain briefly the reasons underlying your answer and state the amount of the error, if any.

The trial balance prepared by Renato Alas Consulting as at September 30, 2024 was not in balance. In searching
for the error, an employee discovered that a transaction for the purchased of a typewriter on credit for P6,100 has
been recorded by a debit of P6,100 to the Office Equipment account and debit of P6,100 to Accounts Payable.
The credit column if the incorrect trial balance has a total of P926,000.

a. Was the office equipment account overstated, understated or correctly stated in the trial balance?
The office equipment account was correctly stated since the typewriter is an asset and is debited.
b. Was the total of the debit column of the trial balance overstated, understated or correctly stated?
The total of the debit column of the trial balance is overstated since Office Equipment and
Accounts Payable were put on the debit column.
c. Was the accounts Payable account overstated, understated, or correctly stated in the trial balance?
The Accounts Payable is overstated because the amount of the typewriter was debited which
should have been credited.
d. Was the total of the credit column of the trial balance overstated, understated, or correctly stated?
The total of the credit column of the trial balance is understated since the Accounts Payable of
P6,100 was not written on the credit column.
e. How much was the total of the debit column of the trial balance before the correction of the error?
The total debit column of the trial balance is P 932,100.

Problem #2:

For each of these errors, determine the following:

a. Is the trial balance out of balance?

b. If out of balance, what is the difference between the column totals?
c. Which column total is larger?

The following errors occurred in posting transactions from the journal to the ledger:
1. A payment of P1,700 for advertising was posted as a P1,700 debit to advertising expenses and a P7,100
credit to cash.
a. Is the trial balance out of balance? YES
b. If out of balance, what is the difference between the column totals? P 7,100 - P1700 = P5400
c. Which column total is larger? CREDIT
 2. The receipt of P3,000 from a client on account was posted as P3,000 debit to cash and a P3,000 credit to
sales.
a. Is the trial balance out of balance? NO
b. If out of balance, what is the difference between the column totals? NONE
c. Which column total is larger? NONE

3. The purchase of supplies on account for P1,400 was posted twice as a debit to supplies and once as a credit
to accounts payable.
a. Is the trial balance out of balance? YES
b. If out of balance, what is the difference between the column totals? P 1,400 x 2 = P 2,800 - P1,400 =P1,400
c. Which column total is larger? DEBIT

4. The payment of P2,200 to a creditor on account was posted as a credit to accounts payable for P2,200 and
credit to cash for P2,200.
a. Is the trial balance out of balance? NO
b. If out of balance, what is the difference between the column totals? NONE
c. Which column total is larger? NONE

Problem #3: Correcting a Trial Balance

Required: Prepare a corrected trial balance.

The June 2023 trial balance for Luzon Duplicators, owned by Eden Brillantes is presented below. The regular
bookkeeper has resigned and left the following trial balance. It did not balance.

Luzon Duplicators
Trial Balance
June 30, 2023
Cash P 44,800
Accounts Receivable 189,600
Supplies 70,800
Equipment 560,000
Accounts Payable 72,600
Brillantes, Capital 513,000
Brillantes, Withdrawals 50,000
Revenues 371,600
Salaries Expense 35,000
Rent Expense 10,000
Utilities Expense __ 6,400______________
Totals P 916,000 P 1,017,200

Upon reviewing the trial balance and the process of transferring the amounts in the ledger accounts to the trial
balance, two errors were discovered:
a. The debit column in the trial balance was footed incorrectly.
b. The balance in the accounts payable ledger account of P62,700 was transferred as P72,600

When the balances of the ledger accounts were recomputed, two more errors were discovered:
c. The utilities expense account balance was overstated by P1,800
d. The total debits in the cash account amounted to P184,600 and the credits totaled P149,800

Discovered four more errors when postings were retraced from the journal to the ledger:
e. A debit posting to Accounts Receivable in the amount of P52,000 should have been P5,200.
f. A debit posting to Accounts Payable for P46,000 was missing
g. A credit posting to Revenues in the amount of P7,600 was missing
h. A credit of P31,000 was posted to Accounts Payable rather than P30,100

Luzon Duplicators
Trial Balance
June 30, 2023
Cash P 34,800
Accounts Receivable 142,200
Supplies 70,800
Equipment 560,000
Accounts Payable 15,800
Brillantes, Capital 513,000
Brillantes, Withdrawals 50,000
Revenues 379,200
Salaries Expense 35,000
Rent Expense 10,000
Utilities Expense __ 4,600______________
Totals P 908,000 P 908,000