Final Accounts - Practice exam help

steph0123
steph0123 Registered Posts: 2
edited August 2018 in General discussion - Advanced level
I'm doing a pratice exam for final accounts and I've been given the below information for a sole trader and have to work out assets liabilites and capital.

Office equipment 13800
Inventory 5850
Bank (debit balance on bank statement) 190
Trade payables 5370

answers
Assets 19650
Liabilites 5560
Capital 14090

However I'm confused why the bank has been included in the liabilities and not assets when it a debit balance? Isn't debit balance bank asset and credit liability?

Comments

  • CSan89
    CSan89 Registered Posts: 207
    They use debit balance as on the bank statement rather than your T account. Pesky AAT trying to catch you out. :wink:
    AAT Level 2&3 - 2016
    AAT Level 4 - 2017
    Personal Tax, Business Tax and External Auditing

    ACA/CTA -
    Certificate Level - Jan 2019

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