Which of the following items is found on the debit side of the trial balance?
Answer Details
On the debit side of the trial balance, you will typically find accounts that have a debit balance, meaning they represent an increase in assets or a decrease in liabilities.
Out of the four options provided, two are likely to have a debit balance - discount allowed and provision for doubtful debts.
Discount allowed is a reduction in the price of goods or services offered to customers as an incentive for early payment. This account is usually recorded as a debit since it represents a decrease in revenue for the business.
Provision for doubtful debts, on the other hand, represents an estimate of the amount of money that a company is unlikely to collect from its debtors. Since this is a type of expense, it is typically recorded as a debit.
Returns outwards and discount received are accounts that typically have a credit balance, meaning they represent a decrease in assets or an increase in liabilities. Therefore, they would appear on the credit side of the trial balance.
In summary, provision for doubtful debts and discount allowed are the options that are likely to appear on the debit side of the trial balance.