CMA Foundation · Fundamentals of Financial and Cost Accounting · Trial Balance
While preparing a trial balance of Sharma Traders, which of the following balances would normally appear on the credit side?
Sundry creditors appear on the credit side of a trial balance because they are a liability with a credit balance. Carriage inwards is an expense, bills receivable is an asset, and drawings reduce capital, so each of those is shown on the debit side.
- ACarriage inwards
- BBills receivable
- CSundry creditorsCorrect
- DDrawings
Explanation
Sundry creditors are a liability and carry a credit balance. Carriage inwards is an expense, bills receivable is an asset, and drawings reduce the owner's capital, so all three are debit balances.
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