Q.From the following ledger balances of Ms. Priya as on 31st March 2026, prepare a Trial Balance: Opening Stock ₹35,000; Purchases ₹2,10,000; Purchase Returns ₹8,000; Sales ₹3,40,000; Sales Returns ₹6,000; Wages ₹45,000; Carriage Inward ₹9,000; Rent and Taxes ₹22,000; Sundry Debtors ₹1,05,000; Sundry Creditors ₹68,000; Bank Loan ₹1,00,000; Capital ₹1,50,000; Drawings ₹18,000; Cash at Bank ₹66,000.

This set includes both 'Returns' accounts, which sit on the opposite side to the main account they relate to — a common point of confusion this question is designed to test. …

Classifying each account: Purchase Returns A/c reduces Purchases and behaves like an income/reduction of expense → credit. Sales Returns A/c reduces Sales and behaves like an expense/reduction of income → debit. All other accounts follow the standard pattern.

Recognise that Returns accounts sit on the opposite side to their parent account (Purchase Returns reduces an expense so behaves as a credit; Sales Returns reduces income so behaves as a debit), classif …

Placing Purchase Returns on the debit side alongside Purchases, or Sales Returns on the credit side alongside Sales — both Returns accounts must be placed on the side OPPOSITE their pa …