Sindh University Dadu Campus

PresentationFinancial Accounting

Topic : Diff: B\W Trial Balance and Adjusted Trial Balance

Class : B.B.A (Hons) Part -1Presenter : FaRaZ MaLik

Trial Balance:Trial Balance is only prepared for tally the amount of accounts, which accounts are taken from ledger.

Adjusted Trial Balance:After all necessary adjusting entries have been journalized and posted, an adjusted trial balance is prepared to prove that the ledger is still in balance .

Adjusted trial balance include the accrual of revenues that were earned but were not yet recorded, and the accrual of expenses that were incurred but were not yet recorded. Accrued expenses and the related liabilities often involve wages, utilities, repairs and maintenance, commissions, interest, and more.

 Accounts UnadjustedTrial Balance

AdjustingEntries

Adjusted Trial Balance

Cash $60,000   $60,000

Accounts receivable 180,000 50,000 230,000

Inventory 300,000   300,000

Fixed assets (net) 210,000   210,000

Accounts payable (90,000)   (90,000)

Accrued liabilities (50,000) $(25,000) (75,000)

Notes payable (420,000)   (420,000)

Equity (350,000)   (350,000)

Revenue (400,000) (50,000) (450,000)

Cost of goods sold 290,000   290,000

Salaries 200,000 25,000 225,000

Payroll taxes 20,000   20,000

Rent 35,000   35,000<

Other expenses 15,000   15,000

Total $0 $0 $0

MALIK InternationalAdjusted Trial Balance

July 31, 2012

Amounts having +ve value are in Debit.Amounts having –ve value are in credit.

That was all about Trial Balance and Adjusted Trial Balance

The End