prepare the trial balance for the transaction above

Question

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Here is the Trial Balance for the enterprise as at 31 May 2015, based on the provided initial list of accounts.

Classify each account as either a Debit or Credit balance.
- Debit Balances (Assets, Expenses, Contra-Revenue):
  
  Land and buildings: K800
  
  Motor vehicles: K500
  
  Office equipment: K400
  
  Inventories as at 1 June 2014: K240
  
  Receivables: K60
  
  Cash and bank: K45
  
  Sales returns: K40
  
  Purchases: K900
  
  Carriage inwards: K30
  
  Carriage outwards: K38
  
  Salaries: K210
  
  Office rent: K48
  
  Discount allowed: K23
  
  Office expenses: K139
  
  Distribution expenses: K72
  
  Utility expenses: K25
  
  Bank charges: K14
  
  Interest expense: K45
- Credit Balances (Liabilities, Equity, Revenue, Contra-Asset, Contra-Expense):
  
  Capital: K800
  
  Accumulated depreciation (Land and buildings): K50
  
  Accumulated depreciation (Motor vehicles): K120
  
  Accumulated depreciation (Office equipment): K70
  
  Provision for doubtful receivables: K4
  
  Payables: K42
  
  Bank loan at 15% per annum: K500
  
  Sales: K1,650
  
  Purchase returns: K34
  
  Discount received: K31
Calculate the total of Debit and Credit balances.
- Total Debits: $800 + 500 + 400 + 240 + 60 + 45 + 40 + 900 + 30 + 38 + 210 + 48 + 23 + 139 + 72 + 25 + 14 + 45 = \text{K}3,629$
- Total Credits: $800 + 50 + 120 + 70 + 4 + 42 + 500 + 1,650 + 34 + 31 = \text{K}3,301$
Determine the Suspense Account balance required to balance the Trial Balance.
- Difference = Total Debits - Total Credits $3,629 - 3,301 = \text{K}328$
- Since the Debit total is higher, the Suspense Account must have a Credit balance of K328 to make the trial balance balance.
- Note: The problem lists "Suspense a/c 12". This K12 is not the balancing figure for the provided list of accounts. The total of K3,446 shown in the image is also inconsistent with the sum of the listed figures.
Prepare the Trial Balance.
$\textbf{Trial Balance} \\ \textbf{As at 31 May 2015} \\ \textbf{(All figures in K'000)}$ $\begin{array}{|l|r|r|} \hline \textbf{Account Name} & \textbf{Debit (K)} & \textbf{Credit (K)} \\ \hline \text{Land and buildings} & 800 & \\ \text{Motor vehicles} & 500 & \\ \text{Office equipment} & 400 & \\ \text{Inventories as at 1 June 2014} & 240 & \\ \text{Receivables} & 60 & \\ \text{Cash and bank} & 45 & \\ \text{Sales returns} & 40 & \\ \text{Purchases} & 900 & \\ \text{Carriage inwards} & 30 & \\ \text{Carriage outwards} & 38 & \\ \text{Salaries} & 210 & \\ \text{Office rent} & 48 & \\ \text{Discount allowed} & 23 & \\ \text{Office expenses} & 139 & \\ \text{Distribution expenses} & 72 & \\ \text{Utility expenses} & 25 & \\ \text{Bank charges} & 14 & \\ \text{Interest expense} & 45 & \\ \text{Capital} & & 800 \\ \text{Accumulated depreciation - Land and buildings} & & 50 \\ \text{Accumulated depreciation - Motor vehicles} & & 120 \\ \text{Accumulated depreciation - Office equipment} & & 70 \\ \text{Provision for doubtful receivables} & & 4 \\ \text{Payables} & & 42 \\ \text{Bank loan at 15\% per annum} & & 500 \\ \text{Sales} & & 1,650 \\ \text{Purchase returns} & & 34 \\ \text{Discount received} & & 31 \\ \text{Suspense Account} & & 328 \\ \hline \textbf{Total} & \textbf{3,629} & \textbf{3,629} \\ \hline \end{array}$

Prepare the trial balance for the transaction above

Step-by-step solution

Classify each account as either a Debit or Credit balance.

Calculate the total of Debit and Credit balances.

Determine the Suspense Account balance required to balance the Trial Balance.

Prepare the Trial Balance.

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