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5 votes
Make trial balance from TRIAL BALANCE

DEBIT
CREDIT
Computer equipment
100,00

Equipment
20,000

Debtors
52,000

Cash
544,600

Capital

600,000
Creditors

5,600
Drawings
500

Services rendered(income)

139,000
Rent
15,000

Salaries &wages
6,900

Utilities expense(electric)
1,800

Utilities expense (water)
3,800


744,600
744,600

User Bob Aman
by
8.5k points

1 Answer

5 votes

Final answer:

To create a trial balance, list the accounts with their respective debit and credit balances, then total each column to ensure they are equal. The provided figures already balance, indicating the trial balance is correct, assuming the 'Computer equipment' entry is indeed $100,000.

Step-by-step explanation:

Creating a Trial Balance

To create a trial balance, you list all the account titles and their balances in two columns - one for debits and the other for credits. The goal is to verify that the sum of debit balances equals the sum of credit balances. You have provided the account titles and balances, so let's prepare the trial balance.

1. List all the accounts with debit balances under the 'Debit' column and those with credit balances under the 'Credit' column.

2. Write down the provided figures next to the corresponding accounts.

3. Add up the totals for both the 'Debit' and 'Credit' columns.

4. Ensure both column totals are equal to verify the trial balance is correct.

In the scenario you've provided, here's how the trial balance would look:

• Computer Equipment: $100,00 (Debit)

• Equipment: $20,000 (Debit)

• Debtors: $52,000 (Debit)

• Cash: $544,600 (Debit)

• Drawings: $500 (Debit)

• Rent: $15,000 (Debit)

• Salaries & wages: $6,900 (Debit)

• Utilities expense (electric): $1,800 (Debit)

• Utilities expense (water): $3,800 (Debit)

• Capital: $600,000 (Credit)

• Creditors: $5,600 (Credit)

• Services rendered (income): $139,000 (Credit)

Ensuring Balance

The sum of debits and the sum of credits should both equal $744,600. If they do not, a mistake has been made and needs to be corrected. The balance in the given task already shows matching sums, so your trial balance is correct.

Note: There appears to be a typo in the provided 'Computer equipment' figure ($100,00). This should likely be $100,000 to maintain the balance.

User Gavin Haynes
by
8.0k points