Reference no: EM132504423

Questions -

Q1. An accounting clerk prepares his trial balance as of June 30, 20-and determines that total debits equal total credits. He breathes a sigh of relief and informs his boss that his ledger is in balance and that therefore the accounts are correct. His boss, a chartered accountant, tells him that this is not necessarily the case. She asks him to prepare a list of four possible errors that could occur and yet not cause the trial balance to be out of balance. Prepare this list as if you were the accounting clerk.

Q2. An employee working on her first trial balance discovers that the Furniture and Equipment account has a credit balance of $5 000 and a customer's account has a credit balance of $200. Has the accountant made a mistake in her records or is this situation possible? Explain.