Complete the Trial Balance for Lynette's Laundry as at 31 August 20.1, explaining the placement of specific…

Question

Complete the Trial Balance for Lynette's Laundry as at 31 August 20.1, explaining the placement of specific accounts.

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Here is the completed Trial Balance: Trial Balance of Lynette's Laundry as at 31 August 20.1 Account description — Account Number — Debit (Rand) — Credit (Rand)Capital — 101 — 25 000 Loan from bank — 102 — 15 000 Fixed assets — 103 — 30 000 Debtors — 104 — 3 000 Cash — 105 — 6 200 Current income — 201 — 17 000 Interest received — 202 — 500 Wages — 203 — 7 500 Materials — 204 — 7 800 Advertising — 205 — 900 Stationery — 206 — 2 100 Total — 57 500 — 57 500 For the specific amounts mentioned in question 1: a) Wages R7 500 should be entered on the debit side as it is an expense. b) Capital R25 000 should be entered on the credit side as it is an owner's equity account. c) Current income R17 000 should be entered on the credit side as it is a revenue account.

Complete the Trial Balance for Lynette's Laundry as at 31 August 20.1, explaining the placement of specific accounts.

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