A Accounting

Credit balance for Bank Loan (video below)

The following balances have been extracted from the nominal ledger accounts of XYZ Company, but the figure for bank loan is unknown. There are no other accounts in the main ledger.

$

Payables 6,750

Capital 16,500

Purchases 40,000

Sales 75,000

Other expenses 27,500

Receivables 8,250

Purchase returns 500

Non-current assets 30,000

Cash in bank 4,500

Bank loan   Unknown

What is the credit balance on the bank loan account?

Answer

Debit balances $ $
Purchases 40,000
Non-current assets 30,000
Receivables 8,250
Other expenses 27,500
Bank 4,500
110,250
Credit balances
Payables 6,750
Capital 16,500
Sales 75,000
Purchase returns 500
98,750
Bank loan (credit balance) 11,500

 


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