This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Step 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 Step 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 Step 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 and the total credits are 138,500 GHc. The Trial Balance does not balance. Send me the next one 📸