A company's trial balance as at December 31, 2023, is as follows:

Debit

Cash: ₦150,000
Accounts Payable: ₦50,000
Sales Revenue: ₦200,000
Cost of Goods Sold: ₦100,000
Credit

Accounts Receivable: ₦30,000
Common Stock: ₦100,000
Salaries Expense: ₦20,000
Rent Expense: ₦10,000

Determine the correct classification of the above items.

Question

A company's trial balance as at December 31, 2023, is as follows:

Debit

Cash: ₦150,000
Accounts Payable: ₦50,000
Sales Revenue: ₦200,000
Cost of Goods Sold: ₦100,000
Credit

Accounts Receivable: ₦30,000
Common Stock: ₦100,000
Salaries Expense: ₦20,000
Rent Expense: ₦10,000

Determine the correct classification of the above items.

Accepted Answer

Assets: ₦150,000, Liabilities: ₦50,000, Equity: ₦100,000

Post Utme Pan Atlantic University 2024 Accounting Question 18