(ii) Depreciate Building at 5% and Furniture at 10%. Accountant need to consider terminoloy of element of financial statement. The $500 negative balance is NOT listed in the credit column. Cash Debit (with the amount of cash received) Accounts receivable Debit (with the amount of receivable) Sales Credit (with the amount of total sales) Explanation: Merchandise sold for cash increases the cash and sold on credit increases the receivable. Rent receivale is under the accounts that belong to the A/R that define the current assets so definitely is an item of Balance Sheet the answer is :A. Write of 5% Depreciation on Freehold Premises and 20% on office furniture. Correct Answer is D) Both Balance Sheet and Profit & Loss Account of Rent Receivable, Rent Receiveable given in trial balance is an Item of A) Balance Sheet. I say that not because I expect lots of presents from eager readers, but because it means that I my star sign is Libra. it is income for the business and therefore goes in the credit column of the trial balance. Wages include Rs. 3. Owner’s Equity Rs. Sales are a form of income so go on the credit side of the trial balance. ‘Sales returns’ will reduce the income generated from sales (as some of the customers sent the goods back) so go on the debit side. They are therefore an expense of the business so would go on the debit side of the trial balance. From the following Trial Balance extracted from the books of A, prepare Trading and Profit & Loss Account for the year ending 31st March, 2019 and a Balance Sheet as at that date:-The following adjustments are to be made: (i) Stock in hand on 31st March, 2019 was Rs. Aim of Trial Balance. Kevin Suri carries on business as a retail trader. Stock at 31st March 2017 is ₹ 70,000. Voici notre page d'internet: http://www.tmf-creditfinance.com/ Adjusting entries are made at the end of an accounting period to record increases of money owed to the business and to recognize revenue being earned. It is a statement of debit and credit balances that are extracted from ledger accounts on a specific date. Example Trial Balance: The trial balance ensures that the debits equal the credits. To account for this unearned rent, the landlord records a debit to the cash account and an offsetting credit to the unearned rent account (which is a liability account). Double entry, the fundamental language of accountancy, has to involve balance; the total of the debits being posted must equal the total of the credits being posted. it is income for the business and therefore goes in the credit column of the trial balance. Every day, thousands of new job vacancies are listed on the award-winning platform from the region's top employers. 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. Journal entry for income received in advance recognizes the accounting rule of “Credit the increase in liability”. Rent Receiveable given in trial balance is an Item of A) Balance Sheet. visit our post, Help! DK Goel Solutions for Class 11 Accountancy Chapter 14 Trial Balance and Errors Practical Questions Q.1 Given below are a Cash Book and Ledger extracts relating to the books of M/s Ram Chander & Sons as at 31st January 2015. Let’s consider some account balances that students often have problems with: Returns can be thought of as the opposite of the transaction that they relate to. Definition of Rent Revenue. Commission earned but not received ₹ 500. Particulars Amount Particulars Amount Rs. Discount received should be a credit balance and not a debit balance. 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