1. From the following balances extracted from the ledger of a sole trader, prepare a
Trial Balance as at 31st March, 2017 :
₹
₹
Capital
3,000 Drawings
300
Premises
1,500 Bank overdraft
376
Plant and machinery
640
General expenses
325
Fixtures and fittings
500 Rent income
245
Purchases
7,640 Rates
135
Sales
10,500 Wages
730
Returns inward
110 Carriage outwards
75
Returns outward
110 Carriage inward
80
Creditors
1,224
Debtors
3,420
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Answer: Trial Balance for the period ending on 31st March 2017
Debit Balances of Trial Balance:
• Drawing 300
• Premises 1500
• Plant and Machinery 640
• General Expenses 325
• Furniture and Fittings 500
• Purchases 7,640
• Rates 135
• Wages 730
• Return Inward 110
• Carriage Outward 75
• Debtors 3,420
• Suspense Account* 160
Credit balances of the Trial Balances:
• Capital 3,000
• Bank Overdraft 376
• Rent Income 245
• Sales 10,500
• Return Outward 110
• Carriage Inward 80
• Creditors 1,224
TOTAL of both sides = ₹ 15,535/-
Explanation: *Suspense Account is an account that is prepared when one side of the Trial Balance doesn't match with the other due to an error in entry(ies)
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