Question

Question 4.14 The accounts shown below appeared in the general ledger of Always Fresh on 30 April 20.6. REQUIRED a. Briefly discuss what an account is. Calculate the balance or total on 31 April 20.6 of each of the accounts above. C. Briefly discuss what a trial balance is and the purpose of preparing it. d. Prepare the trial balance of Always Fresh as at 30 April 20.6. INFORMATION The entries with the same number refer to the same transaction. Capital Drawings 72 000 (6) 400 SSSS Bank 72 000 2 800 (3) 650 (5) (3) 15 000 8 000 200 Inventory 8 000 3 000 (8) (10) 1 600 400 700 500 Equipment 15 000 FO) B Bad (Debtor) 1 100 (10) 650 Discom Suppliers (Creditor) 500 (8) 3 000 Sales - (9) (7) 2 800 1 100 Cost of sales 1 600 700 Stationery 200 (4) (7

Answer 1

a. An account is generally a record having debit and credit balances, and as the type of account and as the transactions take place the account will be debited or credited for example if it's an revenue account it will be credited if revenue is earned the account is used to input all transaction and gain a total balance at the end of a period

Balance or Total as on 31 April 20.6 ((72,000+2,800+650)-(15,000+8,000+200)) Capital Bank Equipment Discom Suppliers (Creditor) Cost of Sales Drawings Inventory B Bad (Debtor) Sales Stationery $ $ $ $ $ $ $ $ (1,600 + 700) 72,000 Credit 52,250 Debit 15,000 Debit 2,500 Credit 2,300 Debit 400 Debit 7,800 Debit 450 Debit 3,900 Credit 200 Debit (8,000+3,000)-(1,600+400+700+500)) (1,100 - 650) (2,800 + 1,100) $ $

7 8 b. Trial Balance is basically an worksheet in which all the balances of the ledger accounts are placed in order to check whether the Debit matches the Credit and there are no errors in the preparation of ledger accounts 9

А с Credit в Always Fresh Trial Balance as on 30 April 20.06 Particulars Debit 5 Bank $ 52,250 5 Equipment $ 15,000 - Inventory $ 7,800 B B Bad (Debtor) $ 450 e Discount Supplies (Creditor) o Capital 1 Drawings $ 400 2 Sales 3 Cost of Sales $ 2,300 4 Stationery $ 200 $ $ 2,500 72,000 $ 3,900 6 Total $ 78,400 $ 78,400