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Archive for the m. Adjusted Trial Balance Category

27 10 2007

ADJUSTED Trial Balance & Its Purpose/Objective

Posted by: slang in m. Adjusted Trial Balance

An ADJUSTED Trial Balance is prepared after ALL ADJUSTING ENTRIES like prepaid expense, unearned revenue,accrued revenue, accrued expenses have been journalized and posted.

The purpose is to prove the equality of the total debit and credit balances in the ledger after ALL ADJUSTMENTS have been made.

Financial Statements can be prepared directly from the adjusted trial balance

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25 10 2007

Trial Balance: What If It Doesn’t Balance

Posted by: slang in k. Trial Balance, m. Adjusted Trial Balance

In the event that your trial balance doesn’t balance, go through the following bookkeeping tips/steps in the suggested order to ensure that the error can be detected soonest possible:

  1. Find out the exact amount of your error: by how much are you out of balance?
  2. Is the error $10,$100 or $1,000? You probably failed to carry when adding or to borrow when subtracting or you may have made a slide error in posting. (more…)

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