CIMA BA3 · Chapter 3 · Question 9 of 10
The following balances were extracted from a sole trader's ledger: capital $30,000, drawings $6,000, sales $85,000, purchases $52,000, trade payables $7,400, trade receivables $9,800, bank overdraft $2,600, non-current assets $41,000 and expenses $16,200. What is the total of the debit column of the trial balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $125,000
Explanation
Debit balances are drawings $6,000, purchases $52,000, receivables $9,800, non-current assets $41,000 and expenses $16,200, a total of $125,000. Credit balances are capital, sales, payables and the bank overdraft, which also total $125,000. The overdraft is a liability, so it is a credit balance.
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