trialbalance.pdf
TRANSCRIPT
Describe the purpose of preparing trial balance and its function in accounting record system
Prepare closing and balance off the T-account
Produce the trial balance
Statement prepare based on account balances in the ledgers at the end of an accounting period
All accounts with debit balances will be listed in the debit side while accounts with credit balances will be listed in the credit side
The total debit amount must be equal to the total amount
if the total amounts are not balanced or not equal, this means that errors or mistakes occurred when entries were made into the accounts.
TRIAL BALANCE
Check the accuracy of calculations Verify the accuracy of double entries Verify the accuracy of posting from the book of original entry to ledgers Prepare financial statement
Prepared by listing all ledger account names their balances in the debit and credit columns according to the balances types
Account balance
Listed
to
Column (Trial Balance)
Types of accounts
Debit Credit
Debit
✔
• Assets • Expenses
Credit
✔
• Capital • Liabilities • Revenues
The total of the debit side of the trial balance:- must be equal to the total of the credit side, or
in the other word, it must be balanced
Total debit side
(Amount)
Total credit side
(Amount)
Assets 300
Expenses 500
Capital 250
Liabilities 150
Revenues 400
800 800
The trial balance total amount will be the same
The following is obtained from the accounting from accounting records of Armel Company. The ledger are to be balanced and a trial balanced is prepared in T-format and in statement format.
Capital Account
2005 RM 2005 RM
Mar 31 Balanced c/d 5,000 Mar 1 Cash 2,200
1 Office equipment 2,800
5,000 5,000
Apr 1 Balance b/d 5,000
Capital Account
Cash Account
2005 RM 2005 RM
Mar 1 Capital 2,200 Mar 8 Purchase 220
17 Sales 120 27 Fajar Company Ltd. 1,000
31 Employees' salaries 300
31 Balance c/d 800
2,320
2,320
Apr 1 Balance b/d 800
Cash Account
Office Equipment Account
Office Equipment Account
2005 RM 2005 RM
Mar 1 Capital 2,800 Mar 31 Balance c/d 2,800
2,800 2,800
Apr 1 Balance b/d 2,800
Purchase Account
2005 RM 2005 RM
Mar 5 Fajar Company Ltd. 1,500 Mar 29 Stationeries 220
8 Cash 220 31 Balance c/d 1,500
1,720 1,720
Apr 1 Balance b/d 1,500
Purchase Account
Sales Account
2005 RM 2005 RM
Mar 31 Balance c/d 4,070 Mar 13 Murni College 2,600
17 Cash 120
21 SMJ Cooperative 1,350
4,070 4,070
Apr 1 Balance b/d
Sales Account
Motor Vehicle Account
2005 RM 2005 RM
Mar 15 Bank loan-Suria 20,000 Mar 31 Balance c/d 20,000
20,000 20,000
Apr 1 Balance b/d 20,000
Motor Vehicle Account
Bank Loan-Suria Account
2005 RM 2005 RM
Mar 31 Balance c/d 20,000 Mar 15 Motor Vehicle 20,000
20,000 20,000
Apr 1 Balance b/d 20,000
Bank Loan-Suria Account
Discount Received Account
2005 RM 2005 RM
Mar 31 Balance c/d 230 Mar 27 Fajar Company Ltd. 230
230 230
Apr 1 Balance b/d 230
Discount Received Account
Stationeries Account
2005 RM 2005 RM
Mar 31 Purchases 220 Mar 31 Balance c/d 220
220 220
Apr 1 Balance b/d 220
Stationeries Account
Salaries Account
2005 RM 2005 RM
Mar 31 Cash 300 Mar 31 Balance c/d 300
300 300
Apr 1 Balance b/d 300
Salaries Account
Returned Outwards Account
2005 RM 2005 RM
Mar 31 Balance c/d 270 Mar 24 Fajar Company Ltd. 270
270 270
Apr 1 Balance b/d 270
Returned Outwards Account
Account Payable
2005 RM 2005 RM
Mar 24 Returned Outwards 270 Mar 5 Purchase 1,500
27 Cash 1,000
31 Discount received 230
1,500 1,500
Accounts Receivable - Murni Collage Account
2005 RM 2005 RM
Mar 31 Sales 2,600 Mar 31 Balance c/d 2,600
2,600 2,600
Apr 1 Balance b/d 2,600
Accounts Receivable-SMJ Cooperative Account
2005 RM 2005 RM
Mar 31 Sales 1,350 Mar 31 Balance c/d 1,350
1,350 1,350
Apr 1 Balance b/d 1,350
Armel Company Trial Balance as at 31 March 2005
Accounts Debit (RM) Credit (RM) Cash 800 Office equipment 2,800 Purchases 1,500 Motor vehicle 20,000 Stationeries 220 Salaries 300 Accounts receiveable-Murni College 2,600 Accounts receiveable-SMJ Cooperative 1,350 Capital 5,000 Sales 4,070 Bank loan -Suria 20,000 Discount received 230 Returnes Outwards 270 29570 29,570
