If a sole trader has a trial balance showing total debits of $50,000 and total c

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What’s inside this PDF?

Question: If a sole trader has a trial balance showing total debits of $50,000 and total credits of $48,000, what is the amount of the discrepancy?

Options:

$1,000
$2,000
$3,000
$4,000

Correct Answer: $2,000

Solution:

The discrepancy is $2,000, calculated as total debits ($50,000) minus total credits ($48,000).

If a sole trader has a trial balance showing total debits of $50,000 and total c

Practice Questions

If a sole trader has a trial balance showing total debits of $50,000 and total credits of $48,000, what is the amount of the discrepancy?

$1,000
$2,000
$3,000
$4,000

Questions & Step-by-Step Solutions

If a sole trader has a trial balance showing total debits of $50,000 and total credits of $48,000, what is the amount of the discrepancy?

Step 1: Identify the total debits from the trial balance, which is $50,000.
Step 2: Identify the total credits from the trial balance, which is $48,000.
Step 3: Subtract the total credits from the total debits: $50,000 - $48,000.
Step 4: Calculate the result of the subtraction, which is $2,000.
Step 5: Conclude that the discrepancy is $2,000.

Trial Balance – A trial balance is a bookkeeping or accounting report that lists the balances of all ledgers accounts of a business at a particular point in time, ensuring that total debits equal total credits.
Discrepancy Calculation – The discrepancy in a trial balance is calculated by subtracting total credits from total debits to identify any errors in the accounting records.

If a sole trader has a trial balance showing total debits of $50,000 and total c

What’s inside this PDF?

If a sole trader has a trial balance showing total debits of $50,000 and total c

Practice Questions

Questions & Step-by-Step Solutions

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