A trial balance is a list of all the accounts in the ledger with their period end balances classified as debits or credits.
When the trial balance entries are correct, the totals of all debit balances are equal to all credit balances.
Trial balance is not an account, it is only a list or schedule of balances of ledger accounts.
Illustration of a Trial Balance
Trial Balance of Narayana Rao & Co, on 31.12.2007
Account
|
Debit
Rs.
|
Credit
Rs.
|
Purchases
|
100,000
|
|
Wages
|
6,000
|
|
Rent
|
2,400
|
|
Travelling expenses
|
4,800
|
|
Interest
|
1,200
|
|
Returns inward
|
4,000
|
|
Bank
|
10,000
|
|
Cash
|
34,000
|
|
Machinery
|
14,000
|
|
Furniture
|
1,000
|
|
Loan
|
45,800
|
|
Miscellaneous expenses
|
200
|
|
Returns outward
|
3,000
|
|
Salaries
|
12,000
|
|
Insurance
|
800
|
|
Discount
|
900
|
|
Sales
|
99,900
|
|
Sundry creditors
|
50,000
|
|
Capital
|
110,000
|
|
Drawings
|
15,000
|
|
Advertisements
|
2,400
|
|
Buildings
|
10,000
|
|
Sundry debtors
|
80,000
|
|
Stock (1-1-2007)
|
10,000
|
|
308,700
|
308,700
|
Originally posted in
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