Prepare Trial Balance from the following ledger balances
Cash 25,000
Sundry debtors 20,000
Furniture 15,000
Sundry creditors 8,000
Bills payable 7,000
Purchases 30,000
Sales 40,000
Salary 5,000
Interest (Cr) 10,000
Capital 30,000
29. Arrange the following items under the hea
Answers
Answer:
TRIAL BALANCE FOR THE YEAR ENDING
Explanation:
Answer:
The Total of the trial balance is 95,000
Concept:
A trial balance is a bookkeeping worksheet where the balances from all ledgers are added up to equal totals in the debit and credit account columns. A corporation occasionally creates a trial balance, often at the conclusion of each reporting period. To check if the entries in a company's bookkeeping system are mathematically correct, a trial balance is generally produced.
Given:
• Cash 25,000
• Sundry debtors 20,000
• Furniture 15,000
• Sundry creditors 8,000
• Bills payable 7,000
• Purchases 30,000
• Sales 40,000
• Salary 5,000
• Interest (Cr) 10,000
• Capital 30,000
Find: prepare the trial balance
Solution:
Debit side of trial balance = cash + sundry debtors + furniture + purchases + salary
Debit side of trial balance= 25,000+20,000+15,000+30,000+5,000
Debit side of trial balance=95,000
Credit Side of trial balance = sundry creditors + bills payable + sales + interest + capital
Credit Side of trial balance=8,000+7,000+40,000+10,000+30,000
Credit Side of trial balance= 95,000
Hence we can conclude that the total of the trial balance is 95,000.
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