One of your clients Mr. Govind asked you to finalize his account for the year ended 31 st March, 2024. As a basis for audit, Mr. Govind furnished…

Corrected Trial Balance of Mr. Govind as on 31 st March, 2024 Particulars Dr. Amount ₹ Cr. Amount ₹ Govind’s Capital 14,004 Govind’s Drawings 5,076 Leasehold Premises 6,750 Sales 24,750 Due from customers 4,770 Purchases 11,331 Purchases Returns 2,376 Loan from Bank 2,304 Trade expenses 6,300 Trade Payable 4,752 Bills payable 900 Salaries and Wages 5,400 Cash at Bank 2,034 Opening Inventory (1.4.2023) 2,376 Rent and rates 4,167 Sales return 882 49,086 49,086 Reasons:Due from customers is an asset, so its balance will be a debit balance.Purchases return account always shows a credit balance because assets goes out.Trade Payable is a liability, so its balance will be a credit balance.Bills payable is a liability, so its balance will be a credit balance.Inventory (opening) represents assets, so it will have a debit balance.Sales return account always shows a debit balance because assets come in.