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The following Trial Balance was extracted from the books of Amoah Enterprise as at 31st December 2023:

Accounting

ScanSolve AI Answer

Step-by-step solution

3 steps
  1. Calculate the total of the Debit column.

    The accounts with debit balances are Purchases, Inventory (1st January 2023), Carriage inwards, Rent and Rates, Salaries and Wages, Office Furniture & Equipment, Trade Receivables, and Bank Balance.

    Total Debits=48,000+8,500+1,200+4,000+14,000+25,000+16,000+11,800=128,500 GHc\begin{align*} \text{Total Debits} &= 48,000 + 8,500 + 1,200 + 4,000 + 14,000 + 25,000 + 16,000 + 11,800 \\ &= 128,500 \text{ GHc} \end{align*}
  2. Calculate the total of the Credit column.

    The accounts with credit balances are Capital, Sales, and Trade Payables.

    Total Credits=45,000+82,000+11,500=138,500 GHc\begin{align*} \text{Total Credits} &= 45,000 + 82,000 + 11,500 \\ &= 138,500 \text{ GHc} \end{align*}
  3. Compare the total debits and total credits.

    A Trial Balance should have equal total debits and total credits.

    Total Debits = 128,500 GHc
    Total Credits = 138,500 GHc

    Since the total debits do not equal the total credits, the Trial Balance is not balanced.

    The total debits are 128,500 GHc\boxed{\text{128,500 GHc}} and the total credits are 138,500 GHc\boxed{\text{138,500 GHc}}. The Trial Balance does not balance.

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