Question

Prepare Trial balance from the following information:  

Opening Stock 1,02,600, Return Outward 48,000, Salaries 36,000, Creditors 84,000, Bank 1,35,000, Rent Received 9,000, Carriage Inwards 18,000, Bills Payable 60,000, Discount Allowed 6,000, Capital 1,65,600, Purchases 3,00,000, Insurance Claim Received 12,000, Debtors 45,000, Sales 4,20,000, Carriage Outwards 15,000, Machinery 54,000, Return Inward 9,000, Trade Expenses 18,000, Building 60,000 (Ans: 7,98,600)​

Answer 1

Answer:

Refer to the attachment.

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.

In other words,

Assets, expenses and losses have a debit balance &

Liabilities and incomes and gains have a credit balance.