Business - Marketing ACC120 Chapter Notes - Chapter 2: No. 610 Squadron Raf, Embezzlement, Accounts Payable
6 Apr 2014
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Month ended may 31, 2014: ahuja, capital, may 1, 2014 ,200. 7,000: ahuja, capital, may 31, 2014 ,200. Total liabilities and owner"s equity ,900: ahuja, capital The prepaid insurance balance was in the wrong column. When this account is moved to the debit column, the new total in the debit column will be ,200 (,700 + ,500) and the new total in the credit column will be ,100 (,600 ,500). The trial balance is now out of balance by (,200 ,100). Capital account is the cause of the difference. If the ,400 balance in that account is transposed to. ,500 this will reduce the total credits by and the trial balance will now balance. Exercise 2-1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Assets are on the left side of the basic accounting equation and liabilities and owner"s equity are on the right side of the basic accounting equation.
