Q1. Which error affects the blancing of a trial balance?
A) a purchase invoice, $2000 completely omitted from the books.
B) a sale on credit, $500, entered in the sales journal as $550
C) purchase of a machine, $5000, entered in purchases account
D) the purchases journal undercast by $100.
Q2. Farad's financial year ends on 31 December.
on 31 December 2007 his account included:
$
equipment at cost 18 000
provision for depreciation of equipment 7 000
on 1 January 2008 Farad purchased equipment for $ 12 000.
Equipment is depreciated at 25% per annum using the straight line method.
What would be the provision for depreciation of equipment on 31 December 2008?
A) $5750 B) $7500 C) $ 12 750 D) $14 500
thanx in advance.
