Question

Hi Guys could someone please help with this questions below. I have also attached the template

The following trial balance does not balance.

Make the necessary adjustments to correctly balance the trial balance and by placing the account balances in the correct debit/credit column.

The following corrections and or adjustments need to be made for errors in the trial balance:

• A number of account balances have been placed on the wrong side of the trial balance

• An amount of $7,000 was omitted to be posted to the credit side of the Bank account

• An amount of $6,000 was wrongly posted to the credit side instead of the debit side of the Inventory account

Trial Balance Debit Credit Bank loan 180,000 Office Equipment 16,000 Premises 280,000 Accounts Receivable 15,500 Accounts Payable 9,500 Bank 35,600 Insurance 2,500 Wages 65,500 Sales 120,000 Cost of goods sold 35,000 Bad debts expense 3,000 Rent expense 52,000 Inventory 24,000 Capital 224,600 495,200 568,000

Answer 1

Answer:-

Trial Balance

Trial Balance
Account Name	Debit	Credit	Debit [Correct]	Credit [Correct]
Bank Loan	180,000			180,000
Office Equipment	16,000		16,000
Premises		280,000	280,000
Accounts Receivable		15,500	15,500
Accounts Payable	9,500			9,500
Bank	35,600		28,600
Insurance	2,500		2,500
Wages		65,500	65,500
Sales		120,000		120,000
Cost of Goods Sold		35,000	35,000
Bad Debts Expense	3,000		3,000
Rent Expense		52,000	52,000
Inventory	24,000		36,000
Capital	224,600			224,600
	495,200	568,000	534,100	534,100

• An amount of $7,000 was omitted to be posted on the credit side of Bank Account and so it is now credited i.e. deducted from its balance and then shown in correct trial balance as $28,600 [35,600-7000].
• An amount of $6,000 was wrongly posted to the credit side instead of the debit side of inventory account. To rectify this error, we will first debit $6,000 to nullify its effect and then again debit the same to give its actual effect that is to post on the debit side [24000+6000+6000 = $36,000].
• All the Assets and Expenses have Debit Balance hence to be posted on debit side of trial balance and all the Liabilities and Income(Revenue) have Credit Balance hence to be posted on the credit side of the trial balance. Accordingly, the above account balances have been correctly posted and rectified.