Question

Collin has extracted the following balances from the ledger accounts for his business: (All amounts in $) Plant and machinery 95,000; Property 135,000; Inventory 6,400; Payables 3,600; Receivables 2,850; Bank overdraft 970; Loan 45,000; Capital 100,000; Drawings 32,000; Sales 362,000; Purchases 156,000; Purchase returns 2,200; Carriage outwards ?; Discounts received 3,500; Sundry expenses 82,500. He has forgotten to extract the balance from the carriage outwards account. What is the value of the missing balance? *

Answer 1

Answer:

Carriage outwards: 7,520 debit

Explanation:

Accounts                         DEBIT     CREDIT

Plant and machinery 95,000

Property                   135,000

Inventory                      6,400

Receivables                2,850

Payables                                           3,600

Bank overdraft                                     970

Loan                                                45,000

Capital                                            100,000

Drawings                 32,000

Sales                                             362,000

Carriage outwards               x

Purchases                156,000

Purchase returns                               2,200

Discounts received                            3,500

Sundry expenses      82,500                          

TOTAL                     509,750           517,270‬

We construct the trial balance and the carriage outwar balance will be the diference between debit and credit:

517,270 - 509,750 = 7,520