Consider the following trial balance (amounts in euro):
Beppe & Brothers Auto Parts Store - trial balance as at 31 March 2005
|
|
Debit
|
Credit
|
|
Cash and cash equivalents
|
32,000
|
|
|
Trade and other receivables
|
28,000
|
|
|
Inventory
|
258,000
|
|
|
Prepaid rent
|
|
8,000
|
|
Prepaid insurance
|
2,000
|
|
|
PPE
|
66,000
|
|
|
Accumulated depreciation
|
30,000
|
|
|
Trade and other payables
|
84,000
|
|
|
Short-term borrowings
|
80,000
|
|
|
Issued capital
|
|
24,000
|
|
Retained earnings
|
|
20,000
|
|
Sales
|
|
1,576,000
|
|
Cost of sales
|
1,000,000
|
|
|
Wages
|
200,000
|
|
|
Other operating expenses
|
160,000
|
|
|
Administrative expenses
|
|
60,000
|
|
TOTAL
|
1,940,000
|
1,688,000
|
(a) List and describe all the errors made in the trial balance of Beppe & Brothers Auto Parts Store.
(b) Prepare a correct trial balance.