Draft Trial balance from the given Ledger Balances;
Name of the Account Amount (Rs.)
Land and Building 10, 00, 000
Shankar (customer) 1, 50, 000
Rohan (Supplier) 1, 80, 000
Rent Received in advance 20, 000
Capital 10, 00, 000
Prepaid Rent 50, 000
Answers
Answered by
4
Answer:
Refer to the attachment.
Disclaimer:
The attached image is the screenshot of the excel file I create my self to prepare the journal; it is not a screenshot from any other website or image of a book.
Rules of Accounting:
Increase in assets or expenses/losses is debited and decrease in assets and expenses/losses is credited.
Increase in liabilities, income/gains and capital is credited and decrease in them is debited.
Explanation:
Land and building are assets.
Shankar is a debtor, therefore an asset for the business.
Rohan is a creditor, a liability for the business.
Rent received in advance is a liability.
Capital has credit balance.
Prepaid rent is also an asset for the business.
Attachments:
Similar questions