Question

Prepare Trial Balance from the following information: 6M
Cash – Rs 25,000
Bank – Rs 10,000
Rent paid – Rs 2,000
Interest received – Rs 4,000
Salaries – Rs 8,000
Purchases – Rs 30,000
Capital – Rs 40,000
Stationery – Rs 2,000
Sales – Rs 31,000
Commission received – Rs 2,000

Answer 1

Answer:

Refer to the attachment.

*It's not a screenshot from a website or image of a book. It's a screenshot of an excel file I used to prepare the trial balance.

Rules of Debit and Credit:

Increase in assets and expenses is debited while decrease in assets and expenses is credited.

Increase in liabilities, capital and income is credited whereas decrease in liabilities, capital and income is debited.

Explanation:

Cash and Bank and stationery are assets, so they are debited.

Rent paid, salaries and purchases are expenses, so they are also debited.

Interest received, commission received and sales are sources of income, so they are credited.

Also, capital is credited.