Question

3. Salman Food Products LLC provides the following information and you are requested to prepare trial balance. Ledger accounts Capital Furniture Cash Accounts Payable Accounts Receivable Drawings Advertising Expenses Salaries Loan Rent received Amounts(RO) 17500 12300 5400 4500 3200 1000 500 4300 2500 400 Ledger accounts Land and Building Wages outstanding Computer and software Plant and Machinery Prepaid rent Service fee income Wages paid Unearned service fee income Purchases Stock (Inventory) Amounts(RO) 3500 1600 2000 1100 1200 14200 2200 700 1700 3000

Answer 1

Trial balance is a statement that lists down list of accounts along with their respective balance. It is used to check mathematical accuracy of the transactions recorded and balances reported for each ledger. Accounts shall be listed according to their liquidity position on trial balance. It starts with assets, then liabilities, then stockholders' equity, then revenues and then expenses.

Credit Salman Food Products LLC Trial Balance Account Titles Debit Cash 5400 Accounts Receivable 3200 Prepaid Rent 1200 Stock (Inventory) 3000 Land and Building 3500 Plant and Machinery 1100 Furniture 12300 Computer and Software 2000 Accounts Payable Wages Outstanding Unearned Service Fee Income Loan Capital Drawings 1000 Service Fee Income Rent Received Purchases 1700 Advertising Expenses 500 Salaries 4300 Wages Paid 2200 Totals 41400 4500 1600 700 2500 17500 14200 400 41400