Sum all Debit Balances

Here's the analysis of the provided trial balance for QUESTION TWO: To verify the trial balance, we sum the debit and credit balances. Step 1: Sum all Debit Balances Receivables: GH¢300,000 Land and Buildings: GH¢420,000 Returns (Debit - Sales Returns): GH¢8,400 Plant and Equipment: GH¢180,000 Carriage Inwards: GH¢2,400 Motor Vehicles: GH¢540,000 Carriage Outwards: GH¢5,400 Furniture and Fittings: GH¢60,000 Purchases: GH¢540,000 Cash Box: GH¢14,400 Inventory: GH¢10,800 Rent and Rates: GH¢7,200 Total Debits = 300,000 + 420,000 + 8,400 + 180,000 + 2,400 + 540,000 + 5,400 + 60,000 + 540,000 + 14,400 + 10,800 + 7,200 Total Debits = GH¢2,088,600 Step 2: Sum all Credit Balances Payables: GH¢192,000 Returns (Credit - Purchase Returns): GH¢4,800 Sales: GH¢960,000 Total Credits = 192,000 + 4,800 + 960,000 Total Credits = GH¢1,156,800 Step 3: Compare Totals The total debits (GH¢2,088,600) do not equal the total credits (GH¢1,156,800). Difference = Total Debits - Total Credits Difference = 2,088,600 - 1,156,800 Difference = GH¢931,800 The trial balance does not balance, with total debits exceeding total credits by GH¢931,800.