One of your clients Mr. X asked you to finalize his account for the year ended 31st March, 2022.
As a basis for audit Mr. X furnished you with the following statement:
| Particulars | Dr. (Rs.) | Cr. (Rs.) |
| :------------------ | --------: | --------: |
| X's Capital | | 4,668 |
| X's Drawings | 1,692 | |
| Leasehold Premises | 2,250 | |
| Sales | | 8,250 |
| Due from customers | 1,590 | |
| Purchases | 3,777 | |
| Purchase Return | | 792 |
| Loan from Bank | | 768 |
| Trade Expense | 2,100 | |
| Trade Payable | | 1,584 |
| Bills Payable | | 300 |
| Salaries and Wages | 1,800 | |
| Cash at Bank | 678 | |
| Opening Inventory | 792 | |
| Rent and Rates | 1,389 | |
| Sales Return | 294 | |
| **Total** | **16,362** | **16,362** |
The closing inventory was Rs. 1,722. Mr. X claims that he has recorded every transaction correctly as the trial balance is tallied. Check the accuracy of the above trial balance and give reasons for the errors, if any.
[June 2022, 4 Marks]; [MTP Jan. 2025; Modified Figures-3X]
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