Questions are set to understand entire chapter of trial balance. Students and learners are suggested to solve first brief answer type questions; then solve short answer questions; then long answer type questions. First, starts to study and practice from beginning of the chapter; after that, if you feel something is confusion you should comment on comment box without any hesitation.
Prathit Trading Concern has following extracted ledger balance for the year Plant and machinery. Provision for bad debts. Sundry debtors. Income tax. Discount on sales. Discount on purchases. Repairs to plant. Wages and salary. Sundry creditors. Custom duty. Bills payable. Travelling expenses.
Since we are given all of the final balances, we will now bifurcate the balances into debit balance and credit balance as per asset and liability classification. Gold Gems has reported the below transactions for the month of Feb , and the accountant wants to prepare the trial balance for the month of Feb Purchase of Raw Material in cash 25,00, Purchase of Raw Material on credit 25,00, Selling of Finish product in cash 35,00, Selling of Finish product on credit 40,00, Salary paid in cash 1,00, First, we will find out the balances of the accounts, and we will then classify them into assets and liabilities and will prepare a trial balance.
ABC and XYZ have decided to merge their business, and they are keen to know how their combined financial statements would look like.
Below is the summary of the account balances. You are required to prepare a combined trial balance. Since we are given with all of the final balances, we will now bifurcate the balances into debit balance and credit balance as per asset and liability classification for individual entities, and then we will sum up the balances to get the combined view. Prb 7. Record the following transactions in the Journal and post them into ledger and prepare a Trail Balance Oct 1 st : Neel started business with a capital of 80, 3 rd : Bought goods from Karl on credit 20, 4 th : Sold goods to Tarl 25, 5 th : Cash purchases 25, 7 th : Cash sales 15, 9 th : Goods retuned to Karl 2, 10 th : Bought furniture for 15, 11 th : Cash paid to Karl 12, 12 th : Goods returned by Tarl 3, 14 th : Goods taken by Neel for personal use 3, 15 th : Cash received from Tarl 12, 16 th : Took loan from Parl 30, 17 th : Salary paid 5, 18 th : Bought stationery for 1, 19 th : Amount paid to Parl on loan account 18, 20 th : Interest received 4, To help identify the reasons why a trial balance may not balance the following steps can be taken.
A trial balance is simply a listing of the debit and credit balances for each account in the accounting ledgers. The debit and credit column totals should be in balance. As a matter of technique it might be worth adding the columns from the bottom upwards to avoid the same mistake being made twice.
Even if the trial balance is still out of balance the process will at least verify that the difference is consistent with previous results. The difference calculated above is the amount of the error in the unbalanced trial balance. A quick check through the accounts in the ledger should be made to determine whether a balance has simply been omitted from the trial balance. In addition check through the trial balance to see whether the amount is included but missed from the column additions.
Take the trial balance difference and divide it by 2. Check the unbalanced trial balance to see whether there is an account balance for this amount. The difference of is divided by 2 to provide the amount of
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