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Identify accounts with debit balances and credit balances.

Accounting

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Part 6· 2 steps

The following balances were extracted from the books of Penuel Traders for the month ended 31 December 2011. Prepare trial balance of Penuel Traders for the month ended 31 December 2011.

  1. Identify accounts with debit balances and credit balances.

    • Debit Balances (Assets & Expenses): Purchases, Motor van, Expenses, Equipment, Debtors
    • Credit Balances (Liabilities, Capital & Revenue): Sales, Capital, Creditors

  2. Prepare the trial balance.

    Account NameDebit (Shs)Credit (Shs)Sales210,000Purchases120,000Capital220,000Motor van150,000Expenses80,000Equipment60,000Debtors40,000Creditors20,000Total450,000450,000\begin{array}{|l|r|r|} \hline \textbf{Account Name} & \textbf{Debit (Shs)} & \textbf{Credit (Shs)} \\ \hline \text{Sales} & & 210,000 \\ \text{Purchases} & 120,000 & \\ \text{Capital} & & 220,000 \\ \text{Motor van} & 150,000 & \\ \text{Expenses} & 80,000 & \\ \text{Equipment} & 60,000 & \\ \text{Debtors} & 40,000 & \\ \text{Creditors} & & 20,000 \\ \hline \textbf{Total} & \textbf{450,000} & \textbf{450,000} \\ \hline \end{array}

    The total debit and credit balances are Shs 450,000.

Part 7

Highlight four benefits that could accrue to a customer who buys goods from Nakumatt Stores.

  • Wide variety of goods: Customers can find a diverse range of products under one roof, saving time and effort.
  • Competitive prices: Large stores like Nakumatt often offer goods at competitive prices due to economies of scale and bulk purchasing.
  • Convenience: Multiple branches, organized store layouts, and ample parking make shopping convenient.
  • Quality assurance: Customers can generally expect a certain standard of quality and freshness, especially for perishable goods, and often have recourse for returns.

Part 8

Outline four elements that comprise the internal environment of a business.

  • Employees/Human Resources: The skills, motivation, and overall workforce of the organization.
  • Organizational Structure: The hierarchy, departments, and reporting relationships within the business.
  • Management/Leadership: The style, capabilities, and decision-making processes of the business's leaders.
  • Financial and Physical Resources: The capital, assets (like machinery, buildings), and technology available to the business.
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