[Tonie_L]

My trial balance won't equal out and I don't know what I'm missing.

Account DR CR
Bank 12,000
A/R 14,300
GST Pay 1,300
Inventory 9,550
Machine 41,250
Vehicle 25,000
A/P 13,700
Bank Charge 525
Mortgage 30,000
OE 20,000
Drawings 2,250
Prov. Doubt. Debts 200
Interested Rec. 2,100
COGS 110,500
Wages 65,200
Bad Debts 275
Interest Expense 1,100
Advertising 25,000
Sales _________ 241,605
304,900 311,000

The instructions say: 1. An amount of $500 was not posted to the debit side of the bank account (which now makes DR equal $305,400.
2. An amount of $750 was incorrectly posted to the credit side of Accounts Receivable when it should have been debit... and that's where I fall apart.

Help?

[Unknown008]

My trial balance won't equal out and I don't know what I'm missing.

Account            |    DR    |   CR
Bank               |   12,000 |
A/R                |   14,300 |
GST Pay            |          |   1,300
Inventory          |    9,550 |
Machine            |   41,250 |
Vehicle            |   25,000 |
A/P                |          |  13,700
Bank Charge        |      525 |
Mortgage           |          |  30,000
OE                 |          |  20,000
Drawings           |          |   2,250
Prov. Doubt. Debts |      200 |
Interested Rec.    |          |   2,100
COGS               |  110,500 |
Wages              |   65,200 |
Bad Debts          |      275 |
Interest Expense   |    1,100 |
Advertising        |   25,000 |
Sales              |  _______ | 241,650
                   |  304,900 | 311,000

The instructions say: 1. An amount of $500 was not posted to the debit side of the bank account (which now makes DR equal $305,400.
2. An amount of $750 was incorrectly posted to the credit side of Accounts Receivable when it should have been debit.... and that's where I fall apart.

Help?

I am not familiar at all with working with trial balances but I noticed a couple of things:

You did a typo in your post, I corrected it now (you put 241605 instead of 241650 for sales)

Also, make sure you have your numbers right, even after carrying out the corrections, I don't get the debit and credit to balance.

For the second part, what you have to do is basically remove the entry of 750 from the credit side, and debit the accounts receivable by 750 (ie. A/R now becomes 15800)

PS - JLo, some support here as for the right Dr/Cr entries? I'm having some doubts for some of them... :o
PS2 - In this form, you can easily export to excel by:
Copying -> paste special -> Text -> Click the paste icon -> Choose Text Import Wizard -> Click Next -> Unselect Space and select Other with | as character

[Just Looking]

Drawings should be a debit. The provision for doubtful accounts should be a credit. With the cash corrected to $12,500 and a/r correct as shown by Unky, the trial balance will now balance. Ask if you are unsure why drawings are a debit and the provision is a credit. Thanks.

[Tonie_L]

Thank you so much. I'm confused as to how the A/R balance went up to 15,800 as 14,300 + 750 = $15,050? I would like it very much if you could explain why those two accounts are the way they are. Thank you.

[Just Looking]

When you have a mistake where something is debited instead of credited (or vice versa) the effect is to double the amount. I'll give you an example using your numbers.

15,050.....balance
....750......incorrect credit
14,300.....current balance before correction

If done correctly:
15,050.....balance of a/r
....750.....debit to account
15,800.....correct balance



The Drawings account is money withdrawn from the business by an owner. The entry is a debit to Drawings and a credit to cash. This drawing account will be closed against owners capital account at the end of the year.

The provision account is an amount of accounts receivable that the company does not expect to collect. While your Accounts Receivable are $15,800, the company is estimating that $200 of that won't be collectible. The provision is what we call a contra account. It is netted against Accounts Receivable to give a truer picture of the company's assets. The entry when establishing the provision is a debit to Bad Debt Expense and a credit to Provision for Doubtful Debts.