- January 22, 2019 at 8:33 pm
I cannot understand how trial balances are done. In the example in the text, on page 32, why are we ignoring the $5000 CR on the Suppliers book?
Of course, if you include that 5000 CR in the trial balance, it doesn’t balance any more.
I can’t see any explanation in that chapter.
Can someone help?January 22, 2019 at 9:11 pm
Transaction 5 says that suppliers are paid what they are owed and $100 is paid for rent. Credits of $5,000 and $100 are showing on cash but there should also have been a debit of $5,000 put to suppliers which would result in a zero balance on suppliers and a debit of $100 for rent. If you add these the trial balance will balance.January 23, 2019 at 7:58 pm
Thanks very much. On page 31, I added a DR dated 31/1/13 for 5000 under the Supplier Account, and added a rent account with a DR dated 31/3/13 for 100. Now the trial balance makes sense!
Lesson learnt for me is to check the dates of transaction to make sure every transaction has a double entry.
Is that meant to be a test or is this an ommission in the text?January 23, 2019 at 10:04 pm
I’m glad it balances now. I’m not sure whether it’s meant to be like that or not, possibly an ommission as I don’t think it told you to complete the entries, did it? It might be worth reporting it, I’m not sure if the tutors monitor this forum. There’s a contact button at the bottom of this page.January 25, 2019 at 10:06 am
Corrections are in hand to add a Rent account and also to recognise the payment to suppliers.
Sorry about the errors.July 17, 2019 at 5:32 pm
But the rent account should be debited by $100 NOT $5000..Please check and make correction if needed..July 23, 2019 at 7:01 pm
Thanks. This has been corrected.
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