.the totals of the entries in the debit and credit columns are: 12,345 in the debit and 8,220.00 in the credit

Question

The Books of Accounting question

Answer 1

Well, something is wrong.

In accounting, when you debit something, you also credit something else.

This means one of a few things:

1) The book is wrong, which is unlikely but not unheard of as there is always errata in every publication.

2) There are some assumptions that you did not record. For example, you made a profit and need to carry over the retained earnings to owners equity. This is probably the most likely thing as problems generally try to test your comprehension and ability to reason.

3) You overlooked something.