Trial Balance Test - 9

Undercasting of the sales book implies that the sales recorded are less than the actual sales. The recorded value of the sales is therefore increased by crediting the sales account.

Repairs to machinery during the time of its usage is a revenue expenditure and will be debited to repairs account.

Rent is an expense and all expenses are to be debited to their particular heads only.

Suspense is an account which is opened when the trial balance does not agree due to the presence of one sided errors.

When one sided errors are rectified, the accounts are debited and credited by unequal amounts. The entry is therfore completed by debiting or crediting the suspense account with the difference.

 When an asset is purchased (whether new or old), the expenses incurred on that asset before putting it to use are to be debited to that asset's account.

When goods are distributed as free samples, it results in an outflow of the goods purchased. Purchases account is therefore credited to reduce the stock of the goods purchased for sale.

Purchase of office typewriter is a capital expenditure while general expenses are of revenue nature. Treating capital expenditure as revenue expenditure is an error of principle.

Suspense account can have debit or credit balance depending upon the type of errors which are left unidentified.

When a transaction is completely omitted from the books, it affects both the debit as well as the credit side equally. Therefore the trial balance is not affected.