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• # 109352
• Tue 30 Jun 2015 11:08 AM

Is it possible to have a credit balance on a capital account and how?

• Cgoatham

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• # 109353
• Tue 30 Jun 2015 11:52 AM

Hi Clive.

A capital account should have a credit balance, as it is a liability of the business.

The business would be considered as owing the investor the money.

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• # 109354
• Tue 30 Jun 2015 12:22 PM

Thanks Martin,

                  As part of an  assignment I have to complete a trial balance  with a missing amount for capital.  The only solution I can come up with is a credit balance of 1360 but it does't make sense. Could you tell me where I 'm going wrong.  The figures are as follows:

Bank overdraft                 1350

Purchases                       15420

Sales                             35270

Purchase Returns                 375

Purchase Ledger Control       4565

Office Equipment                6000

Vehicle                            18000

Stock                                1750

Sales Returns                       550

Sales Ledger Control             5265

Admin Expenses                  13060

VAT owing                           1470

Carriage Out                          750

Discounts received                   205

Capital                               ?

Thanks again

Clive

• Cgoatham

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• # 109355
• Tue 30 Jun 2015 12:23 PM

Clive said:

“

Thanks Martin,

                  As part of an  assignment I have to complete a trial balance  with a missing amount for capital.  The only solution I can come up with is a credit balance of 1360 but it doesn't make sense. Could you tell me where I 'm going wrong.  The figures are as follows:

 

Bank overdraft                 1350

Purchases                       15420

Sales                             35270

Purchase Returns                 375

Purchase Ledger Control       4565

Office Equipment                6000

Vehicle                            18000

Stock                                1750

Sales Returns                       550

Sales Ledger Control             5265

Admin Expenses                  13060

VAT owing                           1470

Carriage Out                          750

Discounts received                   205

Capital                               ?

 

Thanks again

Clive

”

• Cgoatham

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• # 109358
• Tue 30 Jun 2015 01:59 PM

Hi Clive. Just working through the list, I think the Capital figure should be a lot more than that. If you're studying with a tutor then it's probably best to speak with them and get their advice. If you haven't got a tutor then email me at escapedgoblin@virginmedia.com and I'll try and point you in the right direction without actually just telling you the answer.

Dont forget that all items owned by a business and all things a business has paid for would be debits

All money owed by a business and all sources of income would be credits

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• # 109360
• Tue 30 Jun 2015 03:29 PM

Thanks Martin I have just gone through it for the 20th time and realised my stupid mistake.

I had listed the vehicle total as 1,800 instead of 18,000. That was a hard learnt lesson.

Thanks  yet again

Clive

• Cgoatham

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• # 109362
• Tue 30 Jun 2015 06:11 PM

Glad you managed to sort the problem out Clive. 

Martyn

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