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The following is a list of balances for company XYZ ltd. Sales 1,000,000 Purchases 265,000 Vehicles 647 000 Creditors 650 000 Debtors 673 000 Rent 75 000 Wages 90 000 Loan from bank 100,000 Prepare a trial balance for company XYZ ltd.

User Breezeight
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Answer:

Here is the trial balance for company XYZ ltd:

Sales: $1,000,000

Purchases: $265,000

Vehicles: $647,000

Creditors: $650,000

Debtors: $673,000

Rent: $75,000

Wages: $90,000

Loan from bank: $100,000

To ensure the trial balance is balanced, we need to calculate the total debits and credits. In this case, the debits are Sales, Purchases, Vehicles, Rent, Wages, and Loan from bank, while the credits are Creditors and Debtors.

Total Debits:

$1,000,000 (Sales) +

$265,000 (Purchases) +

$647,000 (Vehicles) +

$75,000 (Rent) +

$90,000 (Wages) +

$100,000 (Loan from bank) = $2,177,000

Total Credits:

$650,000 (Creditors) +

$673,000 (Debtors) = $1,323,000

Since the total debits ($2,177,000) do not equal the total credits ($1,323,000), there may be an error in the trial balance. Double-checking the calculations and reviewing the account balances will help identify any discrepancies.

Please note that the trial balance only lists the balances and does not account for specific account types or financial statements. It serves as a tool to ensure the total debits and credits are in balance before preparing financial statements.

User AntLaC
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