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Difficulty: MediumBalancing Ledger Accounts and Extracting Trial Balance

Zenith Freight Services extracted the following ledger balances at the end of its financial year:

- Capital: ₦150,000
- Premises: ₦120,000
- Cash at Bank: ₦35,000
- Motor Vehicles: ₦60,000
- Creditors: ₦25,000
- Sales: ₦180,000
- Purchases: ₦110,000
- Salaries Expense: ₦30,000

Calculate the total debit balance column of the trial balance in Naira (₦).

Answer: 355000 ₦

Answer

The total debit column of the trial balance is ₦355,000.
The trial balance debit total is obtained by summing all debit balance accounts: Premises (₦120,000), Cash at Bank (₦35,000), Motor Vehicles (₦60,000), Purchases (₦110,000), and Salaries Expense (₦30,000), giving a total of ₦355,000. This equals the credit column total (Capital ₦150,000 + Creditors ₦25,000 + Sales ₦180,000 = ₦355,000).

Step-by-Step Solution

1
Classify ledger balances into debit and credit entries based on standard accounting rules.
Debit items: Premises (Asset), Cash at Bank (Asset), Motor Vehicles (Asset), Purchases (Cost), Salaries Expense (Expense). Credit items: Capital (Equity), Creditors (Liability), Sales (Revenue).
Assets and expenses carry normal debit balances, while liabilities, equity, and revenue carry normal credit balances.
2
Sum all debit entries to find the total of the trial balance debit column.
₦120,000 + ₦35,000 + ₦60,000 + ₦110,000 + ₦30,000 = ₦355,000.
Extracting the trial balance requires totaling the debit side to verify double-entry arithmetic equality with the credit side.

Key Concept

Classification of Ledger Balances into Trial Balance Debit and Credit Columns
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Topics

Balancing Ledger Accounts and Extracting Trial Balance

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