Question

Q. From the following information prepare a Trial Balance.
Rs. Rs.
Cash28,650 Capital 50,000
Investent13,500 Furniture3,000
Creditors 2,800 Salary 1,000
Debtors 2,000 Sales 7,000
Purchases 10,100Wages 200
Drawings 1,250 Stationery 100

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Answer 1

Explanation:

in accounts, all assets and expenses are debited (dr.) and liabilities, revenues and capitals are credited (cr.) .

in the question cash (a) , investments (a), purchases (e), furniture (a), salary (e), wages (e) and stationary (a) are all assets (a) or expenses (e) . they're put on the debit side of the trial balance.

creditors (l), capital (c) and sales (r) are all either liabilities (l), capital (c) or revenues (r). They are put on the credit side of the trial balance.

drawings are subtracted from the capital, hence why it is put on the debit side of the trial balance and not on the credit side.

hope this helps :)