Posted by: slang in k. Trial Balance
The following are the steps taken in preparing a Trial Balance;
- Determine the balance of each account in the ledger and Cash Book;
- List the account title and their balances;
- Total the debit and credit balances and
- Prove their equality
Append below a question on completing a simple Trial Balance where all the balances are given:-
|
Question:
Append below is the following balances extracted from the books of A Ltd on 31 December 2006 :-
|
Credit |
|
Debit |
| Bank overdraft |
7,000 |
Fixtures |
31,500 |
| Capital (01/01/06) |
90,000 |
Motor Vehicles |
20,800 |
| Creditors |
15,200 |
Debtors |
24,000 |
| Profit for the year |
58,800 |
Cash |
500 |
| Loan |
35,000 |
|
|
|
|
|
|
The accumulated depreciation figures were:Motor vehicle $ 6,100Fixtures $12,200Question: Complete the trial balance of A Ltd as at 31/12/2006. |
Solution: Trial Balance Of A Ltd As At 31 December 2006
|
Debit |
Credit |
| Premises |
120,000 |
|
| Creditors |
|
15,200 |
| Fixtures |
31,500 |
|
| Overdraft |
|
7000 |
| Motor Vehicles |
20,800 |
|
| Capital |
|
90,000 |
| Motor Vehicles – depreciation |
|
6,100 |
| Stock |
2,700 |
|
| Prepayments |
750 |
|
| Accruals |
|
250 |
| Loan |
|
3,500 |
| Fixtures-depreciation |
|
12,200 |
| Profit & Loss Account |
|
58,800 |
| Total ( DEBIT = CREDIT) |
224,550 |
224,550 |
|
|
This entry was posted on Thursday, October 25th, 2007 at 7:31 am and is filed under k. Trial Balance.
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