Let's break this down step-by-step:
### Step 1: Given Values
1. Initial Capital: \[tex]$45,000
2. Creditors: \$[/tex]1,500
3. Stock: \[tex]$2,500
4. Cash at Bank: \$[/tex]3,000
### Step 2: The Balance Sheet Equation
The balance sheet equation states that:
[tex]\[ \text{Assets} = \text{Liabilities} + \text{Capital} \][/tex]
In other words:
[tex]\[ \text{Total Assets} = \text{Creditors} + \text{Stock} + \text{Cash at Bank} + \text{Debtors} \][/tex]
### Step 3: Calculate Debtors
We need to find the value of the Debtors to balance the equation. Rearranging the equation to solve for Debtors, we get:
[tex]\[ \text{Debtors} = \text{Initial Capital} - \text{Creditors} - (\text{Stock} + \text{Cash at Bank}) \][/tex]
Substituting the given values:
[tex]\[ \text{Total Assets (Stock + Cash at Bank)} = 2500 + 3000 = \$5500 \][/tex]
Next:
[tex]\[ \text{Debtors} = 45000 - 1500 - 5500 = 45000 - 7000 = \$38,000 \][/tex]
### Step 4: Total Assets Including Debtors
Now, we add the Debtors back to the Total Assets calculated.
[tex]\[ \text{Balance on the Trial Balance} = \text{Stock} + \text{Cash at Bank} + \text{Debtors} \][/tex]
Substituting the values:
[tex]\[ \text{Balance on the Trial Balance} = 2500 + 3000 + 38000 = \$43,500 \][/tex]
### Step 5: Matching Options
1. For the amount of Debtors:
- The correct answer is \[tex]$38,000, but the closest matching options were:
- A. \$[/tex]3,000
- B. \[tex]$2,500
- C. \$[/tex]2,000
- D. \[tex]$1,500
- E. \$[/tex]1,000
Since none directly matches \[tex]$38,000, we'll acknowledge that none of the options listed seem to fit Debtors directly.
2. For the balance on the trial balance:
- The correct answer is \$[/tex]43,500, but the closest matching options were:
- A. \[tex]$6500
- B. \$[/tex]5000
- C. \[tex]$4500
- D. \$[/tex]3000
- E. \[tex]$1000
The most fitting option among the given choices is C. \$[/tex]4500 (which likely is an error in options given)
### Conclusion
1. The amount of debtors is none of the options given.
2. The balance on the trial balance is \[tex]$43,500 that is closest of the given options C. \$[/tex]4500.
