PRC-1 · Chapter 3 · Question 45 of 100
Consider the following extracted ledger balances for 'Aurora Tech': Sales Rs. 500,000; Purchases Rs. 250,000; Rent Expense Rs. 40,000; Machinery Rs. 150,000; Trade Receivables Rs. 80,000; Trade Payables Rs. 60,000; Bank Overdraft Rs. 20,000; Capital Rs. 140,000. What is the total of the debit column in the trial balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 520,000
Explanation
Debit balances consist of Purchases (250,000), Rent Expense (40,000), Machinery (150,000), and Trade Receivables (80,000). 250k + 40k + 150k + 80k = Rs. 520,000.
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