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Post the following Item to a trial balance: bank, Cash, debtors, Creditors, bank loan, rent, drawings, discount allowed, discount received, carriage inwards, general expenses, returns inwards, Purchases, Sales, Stock, motor vehicles, furniture & fittings, household premises, Capital

Accounting

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Answer

To post the items to a trial balance, we need to classify each account as having a normal debit or credit balance. Assets, expenses, and drawings typically have debit balances, while liabilities, income, and capital typically have credit balances.

Step-by-step solution

3 steps

  1. Classify each account and its balance.

    • Bank: Asset (Debit) - ₦54,880
    • Cash: Asset (Debit) - ₦4,070
    • Debtors: Asset (Debit) - ₦37,500
    • Creditors: Liability (Credit) - ₦24,500
    • Bank Loan: Liability (Credit) - ₦50,000
    • Rent: Expense (Debit) - ₦15,700
    • Drawings: Owner's Equity Reduction (Debit) - ₦3,750
    • Discount Allowed: Expense (Debit) - ₦500
    • Discount Received: Income (Credit) - ₦1,500
    • Carriage Inwards: Expense (Debit) - ₦750
    • General Expenses: Expense (Debit) - ₦13,750
    • Returns Inwards: Sales Returns (Debit) - ₦600
    • Purchases: Expense (Debit) - ₦160,750
    • Sales: Income (Credit) - ₦254,850
    • Stock: Asset (Debit) - ₦22,600
    • Motor Vehicles: Asset (Debit) - ₦2,500
    • Furniture & Fittings: Asset (Debit) - ₦6,000
    • Household Premises: Asset (Debit) - ₦110,000
    • Capital: Owner's Equity (Credit) - ₦125,000

  2. Prepare the trial balance by listing accounts with debit balances in the debit column and accounts with credit balances in the credit column.

    Account NameDebit (₦)Credit (₦)Bank54,880Cash4,070Debtors37,500Creditors24,500Bank Loan50,000Rent15,700Drawings3,750Discount Allowed500Discount Received1,500Carriage Inwards750General Expenses13,750Returns Inwards600Purchases160,750Sales254,850Stock22,600Motor Vehicles2,500Furniture & Fittings6,000Household Premises110,000Capital125,000Total433,850455,850\begin{array}{|l|r|r|} \hline \textbf{Account Name} & \textbf{Debit (₦)} & \textbf{Credit (₦)} \\ \hline \text{Bank} & 54,880 & \\ \text{Cash} & 4,070 & \\ \text{Debtors} & 37,500 & \\ \text{Creditors} & & 24,500 \\ \text{Bank Loan} & & 50,000 \\ \text{Rent} & 15,700 & \\ \text{Drawings} & 3,750 & \\ \text{Discount Allowed} & 500 & \\ \text{Discount Received} & & 1,500 \\ \text{Carriage Inwards} & 750 & \\ \text{General Expenses} & 13,750 & \\ \text{Returns Inwards} & 600 & \\ \text{Purchases} & 160,750 & \\ \text{Sales} & & 254,850 \\ \text{Stock} & 22,600 & \\ \text{Motor Vehicles} & 2,500 & \\ \text{Furniture \& Fittings} & 6,000 & \\ \text{Household Premises} & 110,000 & \\ \text{Capital} & & 125,000 \\ \hline \textbf{Total} & \textbf{433,850} & \textbf{455,850} \\ \hline \end{array}

  3. Sum the debit and credit columns.

    Total Debits:

    54,880+4,070+37,500+15,700+3,750+500+750+13,750+600+160,750+22,600+2,500+6,000+110,000=433,85054,880 + 4,070 + 37,500 + 15,700 + 3,750 + 500 + 750 + 13,750 + 600 + 160,750 + 22,600 + 2,500 + 6,000 + 110,000 = 433,850

    Total Credits:

    24,500+50,000+1,500+254,850+125,000=455,85024,500 + 50,000 + 1,500 + 254,850 + 125,000 = 455,850

    The trial balance is presented above. The debit total is ₦433,850 and the credit total is ₦455,850. The trial balance does not balance, indicating a discrepancy of ₦22,000 (₦455,850 - ₦433,850).

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