Question 1160862: hi
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Required: Prepare a trial balance at March 31, 2020, and calculate the balance of Revenues
Nora prepares her business accounts for the year ending 31 March each year. At 31 March 2020, the following general ledger balances were available:
Furniture 78,800- - Cash 20,200 - Notes payable 12,000 - Capital 280,000 - Drawings 1,000 - Supplies 12,000 - Revenues??? - Salaries expense 8,000 - Rent expense 2,000- Building 190,000 -
Answer by CPhill(2303)   (Show Source):
You can put this solution on YOUR website! ```python
# Normal balances:
# Assets (Debit):
# - Furniture: 78,800
# - Cash: 20,200
# - Supplies: 12,000
# - Building: 190,000
# Liabilities (Credit):
# - Notes payable: 12,000
# Equity:
# - Capital (Credit): 280,000
# - Drawings (Debit): 1,000
# Expenses (Debit):
# - Salaries expense: 8,000
# - Rent expense: 2,000
# Revenue (Credit):
# - Revenues: ?
debits = {
"Furniture": 78800,
"Cash": 20200,
"Drawings": 1000,
"Supplies": 12000,
"Salaries expense": 8000,
"Rent expense": 2000,
"Building": 190000,
}
known_credits = {
"Notes payable": 12000,
"Capital": 280000,
}
total_debits = sum(debits.values())
total_known_credits = sum(known_credits.values())
revenues = total_debits - total_known_credits
print(f"Total Debits: {total_debits}")
print(f"Total Known Credits: {total_known_credits}")
print(f"Revenues: {revenues}")
```
```text
Total Debits: 312000
Total Known Credits: 292000
Revenues: 20000
```
To determine the balance of **Revenues**, we classify each account by its normal balance (Debit or Credit) according to double-entry accounting rules:
### 1. Classification of Accounts
* **Assets (Debit):**
* Cash: $20,200
* Supplies: $12,000
* Furniture: $78,800
* Building: $190,000
* **Contra-Equity (Debit):**
* Drawings: $1,000
* **Expenses (Debit):**
* Salaries expense: $8,000
* Rent expense: $2,000
* **Liabilities (Credit):**
* Notes payable: $12,000
* **Equity (Credit):**
* Capital: $280,000
* **Revenue (Credit):**
* Revenues: Unknown ($R$)
---
### 2. Calculation of Revenues
$$\text{Total Debits} = 20,200 + 12,000 + 78,800 + 190,000 + 1,000 + 8,000 + 2,000 = 312,000$$
$$\text{Total Known Credits} = 12,000 + 280,000 = 292,000$$
Since a trial balance requires $\text{Total Debits} = \text{Total Credits}$:
$$\text{Revenues} = \text{Total Debits} - \text{Total Known Credits}$$
$$\text{Revenues} = 312,000 - 292,000 = \mathbf{20,000}$$
---
### 3. Nora's Business Trial Balance
### Nora's Business
**Trial Balance**
**As at March 31, 2020**
| Account Title | Debit ($) | Credit ($) |
| --- | --- | --- |
| Cash | 20,200 | |
| Supplies | 12,000 | |
| Furniture | 78,800 | |
| Building | 190,000 | |
| Notes Payable | | 12,000 |
| Capital | | 280,000 |
| Drawings | 1,000 | |
| Revenues | | **20,000** |
| Salaries Expense | 8,000 | |
| Rent Expense | 2,000 | |
| **Total** | **312,000** | **312,000** |
| |
|
