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Determine the amount of debt and the balance on the trial balance given the following:

- Capital: \[tex]$45,000
- Debtors: ?
- Creditors: \$[/tex]1,500
- Stock: \[tex]$2,500
- Cash at bank: \$[/tex]3,000

1. What is the amount of debt?

A. \[tex]$3,000
B. \$[/tex]2,500
C. \[tex]$2,000
D. \$[/tex]1,500
E. \[tex]$1,000

2. What is the balance on the trial balance?

A. \$[/tex]6,500
B. \[tex]$5,000
C. \$[/tex]4,500

Sagot :

GinnyAnswer
First, let's understand the components provided in the question:

- Capital: \[tex]$45,000 - Creditors: \$[/tex]1,500
- Stock: \[tex]$2,500 - Cash at Bank: \$[/tex]3,000

We need to determine two things:
1. The amount of Debtors.
2. The balance of the trial balance.

### Step-by-Step Solution

#### 1. Determine the amount of Debtors

To find the debtors, we can use the accounting equation:
[tex]\[ \text{Assets} = \text{Liabilities} + \text{Capital} \][/tex]

From the given data:
- Capital is \[tex]$45,000. - Creditors (Liabilities) are \$[/tex]1,500.
- Stock (Asset) is \[tex]$2,500. - Cash at Bank (Asset) is \$[/tex]3,000.

First, calculate the Total Assets excluding Debtors:
[tex]\[ \text{Total Assets (excluding Debtors)} = \text{Stock} + \text{Cash at Bank} \][/tex]
[tex]\[ \text{Total Assets (excluding Debtors)} = \$2,500 + \$3,000 = \$5,500 \][/tex]

Next, calculate the Total Liabilities and Capital:
[tex]\[ \text{Total Liabilities and Capital} = \text{Capital} + \text{Creditors} \][/tex]
[tex]\[ \text{Total Liabilities and Capital} = \$45,000 + \$1,500 = \$46,500 \][/tex]

Finally, calculate the Debtors:
[tex]\[ \text{Debtors} = \text{Total Liabilities and Capital} - \text{Total Assets (excluding Debtors)} \][/tex]
[tex]\[ \text{Debtors} = \$46,500 - \$5,500 = \$41,000 \][/tex]

So, the amount of Debtors is \[tex]$41,000. Therefore, none of the provided answers (A. \$[/tex]3,000, B. \[tex]$22,500, C. \$[/tex]2,000, D. \[tex]$1,500, E. \$[/tex]1,000) are correct based on this calculation.

#### 2. Determine the balance of the trial balance

The trial balance total is the sum of all the assets:
[tex]\[ \text{Trial Balance Total} = \text{Stock} + \text{Cash at Bank} + \text{Debtors} + \text{Capital} - \text{Creditors} \][/tex]

Let's compute this step-by-step:
[tex]\[ \text{Trial Balance Total} = \$2,500 + \$3,000 + \$41,000 + \$45,000 - \$1,500 \][/tex]
[tex]\[ \text{Trial Balance Total} = \$90,000 \][/tex]

So, the balance on the trial balance is \[tex]$90,000. Again, none of the provided answers (A. \$[/tex]6,500, B. \[tex]$5,000, C. \$[/tex]4,500) are correct based on this calculation.

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In conclusion, based on the provided information and the calculations:
- The amount of Debtors is \[tex]$41,000. - The balance of the trial balance is \$[/tex]90,000.
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