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If a company has a trial balance with total debits of $50,000 and total credits

Practice Questions

Q1

If a company has a trial balance with total debits of $50,000 and total credits of $48,000, what is the discrepancy?

$1,000 debit
$2,000 credit
$2,000 debit
$1,000 credit

Questions & Step-by-Step Solutions

If a company has a trial balance with total debits of $50,000 and total credits of $48,000, what is 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: Calculate the difference between total debits and total credits by subtracting total credits from total debits: $50,000 - $48,000.
Step 4: The result of the calculation is $2,000.
Step 5: Since total debits are greater than total credits, the discrepancy is a $2,000 debit.

Trial Balance – A trial balance is a statement that lists the total debits and credits of a company's accounts to ensure they are equal.
Discrepancy Calculation – The discrepancy is calculated by subtracting total credits from total debits to identify any imbalance.

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