Using illustration 2 make a trial balance now

• Assets (Debit Balances):
  • Premises: N20,000
  • Motor Van: N45,000
  • Fixtures and Fittings: N6,500
  • Stock: N12,000
  • Debtors: N48,000
  • Total Assets = N20,000 + N45,000 + N6,500 + N12,000 + N48,000 = N131,500
• Liabilities (Credit Balances):
  • Creditors: N75,000
• Capital (Balancing Figure):
  • Capital = Total Assets - Total Liabilities = N131,500 - N75,000 = N56,500 (Credit)
• Assumption: Initial Cash and Bank balances are N0 as they are not explicitly listed as assets.

• Premises: Dr N20,000 (No change)
• Motor Van: Dr N45,000 (Initial) + Dr N30,000 (May 14) = Dr N75,000
• Fixtures & Fittings: Dr N6,500 (No change)
• Stock: Dr N12,000 (No change)
• Debtors:
  • Initial Dr: N48,000
  • May 4 Dr (Sani N7,800, Junaidu N9,800): N17,600
  • May 9 Dr (Telan N2,700, Mohammed N6,700): N9,400
  • May 11 Cr (Sani N500, Junaidu N200 returns): N700
  • May 16 Cr (Sani N7,300, Junaidu N9,600, Telan N2,700 paid): N19,600 (Gross amount before discount)
  • May 19 Cr (Mohammed N700 returns): N700
  • Final Balance = N48,000 + N17,600 + N9,400 - N700 - N19,600 - N700 = Dr N54,000
• Creditors:
  • Initial Cr: N75,000
  • May 3 Cr (Dogo N5,600, Nuhu N3,800): N9,400
  • May 6 Dr (Dogo N1,000, Nuhu N600 returns): N1,600
  • May 14 Cr (General Motors N30,000): N30,000
  • May 22 Cr (Alhassan N8,900, Usman N7,200): N16,100
  • May 24 Dr (Alhassan N8,900, Dogo N4,600, Nuhu N3,200 paid): N16,700 (Gross amount before discount)
  • May 31 Dr (General Motors N30,000 paid): N30,000
  • Final Balance = N75,000 + N9,400 - N1,600 + N30,000 + N16,100 - N16,700 - N30,000 = Cr N82,200
• Capital: Cr N56,500 (No change from initial)
• Cash:
  • Initial: N0
  • May 5 Cr (Motor expenses): N4,800
  • May 7 Cr (Drawings): N2,000
  • Final Balance = Cr N6,800 (Overdrawn)
• Bank:
  • Initial: N0
  • May 2 Cr (Rent): N1,500
  • May 16 Dr (Debtors payment): N18,620 (N19,600 - 5% discount of N980)
  • May 24 Cr (Creditors payment): N15,030 (N16,700 - 10% discount of N1,670)
  • May 27 Cr (Salaries): N5,600
  • May 30 Cr (Purchases): N5,600
  • May 31 Cr (General Motors): N30,000
  • Final Balance = N18,620 - N1,500 - N15,030 - N5,600 - N5,600 - N30,000 = Cr N39,110 (Overdraft)
• Rent Expense: Dr N1,500 (May 2)
• Purchases: Dr N9,400 (May 3) + Dr N16,100 (May 22) + Dr N5,600 (May 30) = Dr N31,100
• Sales: Cr N17,600 (May 4) + Cr N9,400 (May 9) = Cr N27,000
• Motor Expenses: Dr N4,800 (May 5)
• Purchases Returns: Cr N1,600 (May 6)
• Drawings: Dr N2,000 (May 7)
• Sales Returns: Dr N700 (May 11) + Dr N700 (May 19) = Dr N1,400
• Discount Allowed: Dr N980 (May 16, 5% of N19,600)
• Discount Received: Cr N1,670 (May 24, 10% of N16,700)
• Salaries Expense: Dr N5,600 (May 27)

The trial balance balances with a total of N216,880 for both debit and credit columns.