Subject:
AccountancyAuthor:
brodieCreated:
1 year agoAnswer:
your total of trial balance is wrong because only closing stock and sales amount is close to this total what about other credit aspects
Author:
mathewyac5
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9=> Debit side of the Trial Balance:
1) Assets.
2) Expenses and losses.
3) Receivable and debtors.
4) Contra liabilities.
=> Credit side of the Trial Balance:
1) Liabilities.
2) Incomes and revenue.
3) Payable and creditors.
4) Contra assets.
Explanation of Answer:
1. Proprietor's Capital Account - Proprietor's capital account is liability. So, it is written in the credit column.
2. Bills Receivable - Bills receivable is an asset because a bills receivable to the drawer (Drawer is a person who draws up a bill) as money is receivable on the bill. So, it is written in the debit column.
3. Wages - Wages is an expense. So it is written in the debit column.
4. Sundry Debtors - Sundry debtors is an asset. So it is written in the debit column.
5. Bank Loan - Bank loan is an asset because we are getting money from bank. So, it is written in the debit column.
6. Purchases - Purchases is an expense. So, it is written in the debit column.
7. Commission Received - Commission received is income. So, it is written in the credit column.
8. Rent - Rent is an expense. So it is written in the debit column.
9. Proprietor's Drawing Account - Proprietor's drawing account is an asset. So, it is written in the debit column.
10. Plant and Machinery - Plant and machinery is an asset. So, it is written in the debit column.
11. Salaries - Salaries is an expense. So, it is written is the debit column.
12. Sundry Creditor - Sundry creditor is a liability. So, it is written in the credit column.
13. Returns Inward - It is also known as sales return is written in the debit column because sales are the form of income (credit) and sales return is reduced the income so it become debit and it is a contra liability. So, it is written in the debit column.
14. Sales - As I already said that sales are the form of income and income is written is the credit column. So sales is written in the credit column.
15. Discount Allowed - It is an expense. So it is written in the debit column.
16. Opening Stock - Opening stock is written in the debit side of the trial balance.
17. Travelling Expenses - It is written in the debit column.
18. Cash - Cash is an asset. So, it is written in the debit column.
19. Repairs - It is an expense. So, it is written in the debit column.
20. Furniture - It is an asset. So, it is written in the debit column.
21. Input CGST (Central Goods and Services Tax) - Input cgst is written is the debit column.
22. Input SGST (State Goods and Services Tax) - Input sgst is written in the debit column.
23. Insurance - It is an asset. So, it is written in the debit column.
24. Bank Debit Balance - It is written in the debit column.
25. Bad Debt. - It is an expense. So it is written in the debit column.
26. Output CGST (Central Goods and Services Tax) - It is written in the credit column.
27. Output GST (Goods and Services Tax) - It is written in the credit column.
• Closing stock is not shown in the trial balance.
=> Total amount of debit side. = Total amount of credit side.
=> 5,71,300 = 5,71,300
Author:
patchesjqj1
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