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Question 1:

Given the following financial information:

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

What is the amount of debtors?

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


\ \textless \ strong\ \textgreater \ Question 2:\ \textless \ /strong\ \textgreater \

What is the balance of the trial balance?

A. \$[/tex]6,500
B. \[tex]$5,000
C. \$[/tex]4,500
D. \[tex]$3,000
E. \$[/tex]1,000

Sagot :

GinnyAnswer
Let's break this down step-by-step:

### Step 1: Given Values

1. Initial Capital: \[tex]$45,000 2. Creditors: \$[/tex]1,500
3. Stock: \[tex]$2,500 4. Cash at Bank: \$[/tex]3,000

### Step 2: The Balance Sheet Equation

The balance sheet equation states that:

[tex]\[ \text{Assets} = \text{Liabilities} + \text{Capital} \][/tex]

In other words:

[tex]\[ \text{Total Assets} = \text{Creditors} + \text{Stock} + \text{Cash at Bank} + \text{Debtors} \][/tex]

### Step 3: Calculate Debtors

We need to find the value of the Debtors to balance the equation. Rearranging the equation to solve for Debtors, we get:

[tex]\[ \text{Debtors} = \text{Initial Capital} - \text{Creditors} - (\text{Stock} + \text{Cash at Bank}) \][/tex]

Substituting the given values:

[tex]\[ \text{Total Assets (Stock + Cash at Bank)} = 2500 + 3000 = \$5500 \][/tex]

Next:

[tex]\[ \text{Debtors} = 45000 - 1500 - 5500 = 45000 - 7000 = \$38,000 \][/tex]

### Step 4: Total Assets Including Debtors

Now, we add the Debtors back to the Total Assets calculated.

[tex]\[ \text{Balance on the Trial Balance} = \text{Stock} + \text{Cash at Bank} + \text{Debtors} \][/tex]

Substituting the values:

[tex]\[ \text{Balance on the Trial Balance} = 2500 + 3000 + 38000 = \$43,500 \][/tex]

### Step 5: Matching Options

1. For the amount of Debtors:
- The correct answer is \[tex]$38,000, but the closest matching options were: - A. \$[/tex]3,000
- B. \[tex]$2,500 - C. \$[/tex]2,000
- D. \[tex]$1,500 - E. \$[/tex]1,000

Since none directly matches \[tex]$38,000, we'll acknowledge that none of the options listed seem to fit Debtors directly. 2. For the balance on the trial balance: - The correct answer is \$[/tex]43,500, but the closest matching options were:
- A. \[tex]$6500 - B. \$[/tex]5000
- C. \[tex]$4500 - D. \$[/tex]3000
- E. \[tex]$1000 The most fitting option among the given choices is C. \$[/tex]4500 (which likely is an error in options given)

### Conclusion

1. The amount of debtors is none of the options given.
2. The balance on the trial balance is \[tex]$43,500 that is closest of the given options C. \$[/tex]4500.
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