The following are the balances on the accounts of ABC on 31 August 2021:
£
Sales 41,700
Purchases 34,680
Receivables. 6,790
Payables 5,650
General expenses. 12,760
Loan 10,000
Plant and Machinery at cost of 5,000
Motor Van at cost 6,000
Drawings. 2,000
Rent and rates 6,700
Insurance 4,000
Bank overdraft 510
Capital 20,000

Required:
a) Prepare ABC's trial balance as of 31 August 2021. 

b) Explain the benefits and limitations of the trial balance in a business Organisation.

Answer rating: 100% (QA)

a ABCs Trial Balance as of 31 August 2021 Accounts Debit Credit Sales 41700 Purchases 34680 Receivables 6790 Payables 5650 General Expenses 12760 Loan 10000 Plant and Machinery 5000 Motor Van 6000 Dra... View the full answer