In: Accounting
The following ledger balances make up a company’s trial balance:
Sales K76, 700
Purchases K 26,800
Non-current assets K31, 400
Payables K18, 200
Receivables K32, 300
Cash at bank K14, 200
Capital K9, 800
What is the total of the debit column of the trial balance?
Explain your answer
--Trial Balance is prepared after the journal entries have been posted to Ledgers accounts. After figuring out the balances of Ledger accounts, the balances are posted to Trial balances.
--Usually, these accounts have normal debit balances: Asset accounts, Expense accounts, Contra revenue account, Contra Liability account, Drawings accounts, Purchase account.
--Accordingly, these accounts have normal credit balances: Liability accounts, Equity Accounts, Revenue accounts, Sales account, Capital account.
--All Assets and expenses account with debit balances are taken to Debit side, and Liability accounts, Capital account, revenue account having credit balances are taken to Credit Side.
--After posting all balances to Debit and Credit side of Trial Balance, the Trial Balance’s each side MUST BE EQUAL, which means debits shall be equal to credits.
Debit |
Credit |
|
Sales |
$ 76,700.00 |
|
Purchases |
$ 26,800.00 |
|
Non Current Assets |
$ 31,400.00 |
|
Payables |
$ 18,200.00 |
|
Receivables |
$ 32,300.00 |
|
Cash at Bank |
$ 14,200.00 |
|
Capital |
$ 9,800.00 |
|
Total of Debit Column of Trial Balance |
$ 104,700.00 |
$ 104,700.00 |
Answer: Total of Debit Column = $ 104,700