In preparing the trial balance of the K&L's Bridal Service, the Withdrawal account (which had a normal balance in the general ledger) was listed as a credit for $300. What will be the difference between the debit and credit sides of the trial balance?
A) $150
B) $200
C) $300
D) $600

Question

Quizplus · Accepted Answer

Since the Withdrawal account was listed as a credit for $300, it means that $300 was withdrawn from the business by the owner. This would have decreased the owner's equity in the business (which is a credit balance) and increased the Withdrawal account (which is a debit balance). Therefore, the trial balance would be imbalanced by $600 ($300 debit balance decrease in owner's equity + $300 credit balance increase in Withdrawal account).

In Preparing the Trial Balance of the K&L's Bridal Service