Ame provided the following balances from his books at 31 March 2020. Capital $ 10369 Drawings $ 4000 Equipment at cost $ 15500 Provision for depreciation of equipment $ 3100 Inventory at 1 April 2019 $ 1765 Trade receivables $ 1290 Bank overdraft $ 475 Trade payables $ 1600 Sales $ 31250 Purchases $ 18330 Purchases returns $ 910 Carriage inwards $ 640 Discount received $ 815 Commission receivable $ 1500 Rent and insurance $ 5700 Office expenses $ 2425 Ame later discovered several errors had been made in the accounting records.

Mark scheme

Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.

1. [1] Correct classification and value for 4 debit balances (e.g. Drawings, Equipment at cost, Inventory at 1 April 2019, Trade receivables, Purchases, Carriage inwards, Rent and insurance, Office expenses)
2. [1] Correct classification and value for 4 credit balances (e.g. Capital, Provision for depreciation of equipment, Bank overdraft, Trade payables, Sales, Purchases returns, Discount received, Commission receivable)
3. [1] Correct classification and value for any 2 other items
4. [1] Correct calculation of suspense account (369 Dr)
5. [1] Correct total for Trial Balance (50019)
6. [1] Debit Cash $60, Credit Sales $60 (Example - not explicitly marked in MS)
7. [1] Debit Office expenses $240
8. [1] Debit Wages $240
9. [1] Credit Suspense $480
10. [1] Debit Suspense $486
11. [1] Credit Purchases $486
12. [1] Debit Rent and insurance $375
13. [1] Credit Suspense $375
14. [1] Debit Equipment $800
15. [1] Credit Office expenses $800
16. [1] Debit: Difference on trial balance $369 (from 2(a) OF)
17. [1] Debit: Purchases $486 (from 2(b) Error 3)
18. [1] Credit: Office expenses $240 (from 2(b) Error 2)
19. [1] Credit: Wages $240 (from 2(b) Error 2)
20. [1] Credit: Rent and insurance $375 (from 2(b) Error 4)
21. [1] Total $855 (balanced)