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Help sir
1) In the trial balance how does the rent received as a debit balance not to agree
2) Disc received $150 were extracted to the debit column of the trial balance
How does the debit exceeded the credits by $300
Could you please explain this
How can I properly answer you without seeing which question you are referring to???
1. Rent received is income and should therefore be a credit balance, not a debit balance.
2. Discount received should be a credit balance and not a debit balance. By putting it on the debit side instead of the credit side, it means that the credits are 150 lower than they should be and the debits are 150 higher than the should be. So the total of the debits will be 300 more than the total of the credits.
Have you watched my free lectures on this? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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