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JAMB Principles of Accounts 2005 Question 5

Question 5

Trial Balance

Given:
Rent ₦10 000
Rates ₦5 000
Capital ₦50 000
Salaries ₦14 000
Cash ₦26 000
Creditors ₦5 000
The total trial balance is

  1. A.₦110 000
  2. B.₦65 000
  3. C.₦55 000
  4. D.₦45 000
Show the answer and explanation

Answer: C (₦55 000)

Explanation

Debits: rent 10 000 + rates 5 000 + salaries 14 000 + cash 26 000 = ₦55 000. Credits: capital 50 000 + creditors 5 000 = ₦55 000.