Trial balance had errors in account placement. Fixed assets, Bills receivable, and Debtors should be debit while Return outward, Carriage outward, Bills payable, and Creditors should be credit. Corrected trial balance is provided.
The image you sent is a trial balance that has been incorrectly drafted. The following are some of the errors in the trial balance:
* Return inward and Carriage inward should be on the debit side of the trial balance, as they are expenses.
* Return outward and Carriage outward should be on the credit side of the trial balance, as they are revenue deductions.
* Fixed assets should be on the debit side of the trial balance, as they are assets.
* Bills receivable and Debtors should be on the debit side of the trial balance, as they are assets.
* Bills payable** and Creditors should be on the credit side of the trial balance, as they are liabilities.
The following is a corrected trial balance:
| Account | Debit | Credit |
|---|---|---|
| Capital | 60,000 | |
| Opening stock | 5,000 | |
| Discount allowed | 500 | |
| Commission received | 700 | |
| Fixed assets | 60,000 | |
| Sales | 85,000 | |
| Purchases | 45,000 | |
| Return outward | 1,000 | |
| Return inward | 2,000 | |
| Carriage inward | 600 | |
| Carriage outward | 700 | |
| Wages & Salary | 25,000 | |
| Bills receivable | 7,000 | |
| Debtors | 9,000 | |
| Bills payable | | 7,000 |
| Creditors | | 6,900 |
| Rent | 3,000 | |
| Interest paid | 2,000 | |
| Cash | 800 | |
| Closing stock | 33,800 | |
| Total | 1,77,500 | 1,77,500 |
Please note that the total debit and credit sides of the trial balance must be equal. This is because every transaction has two equal and opposite effects on the accounts involved.