Paula's trial balance contains errors. | | debit \$ | credit \$ | | :--- | :--- | :--- | | fixtures and fittings | 4000 | | | light and heat | 600 | | | purchases | 11200 | | | insurance | 1200 | | | sales | | 16500 | | trade payables | | 3500 | | trade receivables | 5500 | | | bank overdraft | 1000 | | | capital | | 3500 | | drawings | | 2000 | | | 23500 | 25500 | What is the corrected trial balance total?
Explanation
The correct option is D because the trial balance has errors. The total of the debit column is $23500 and the total of the credit column is $25500. To correct the trial balance, we need to find the difference between the two totals, which is $25500 - $23500 = $2000. This difference should be allocated to the accounts that have errors. Looking at the trial balance, we can see that the sales account has a credit of $16500 and the trade payables account has a credit of $3500. The trade receivables account has a debit of $5500. The bank overdraft account has a debit of $1000. The capital account has a credit of $3500 and the drawings account has a credit of $2000. The fixtures and fittings account has a debit of $4000 and the light and heat account has a debit of $600. The purchases account has a debit of $11200 and the insurance account has a debit of $1200. The corrected trial balance total is $25500.
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