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L2 Trial Balance
 

L2 Trial Balance

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    L2 Trial Balance L2 Trial Balance Presentation Transcript

      • Objectives
      • Upon the completion of this topic the student will be able to know
      • Preparing Trial balance under Total Balances Method
    • Recap
      • Trial balance is prepared:
      • To check the arithmetical accuracy
      • To know at a glance the balances of various accounts
      • To serve as the starting point for preparation of the final accounts
      • Helps the auditors in checking the accounts
    • Preparation of Trial balance under total balances method
      • Under this method:
      • Debit as well as credit sides of all the ledger accounts will be totalled
      • These totals will be taken for preparing the Trial Balances
      • Debit totals figure on the debit column of Trial Balance
      • Credit totals figure on the credit column of the Trial balance
    • Proforma of Trial Balance Trial Balance as on _____________ Credit Rs. Debit Rs. LF Name of the Account Sl No
    • Exercise
      • From the following Prepare Trial balance under Total Balances Method as on 31-3-1998
      • Cash Dr. 22,550 Purchases Cr. 400
      • Cash Cr. 11,580 Chaten A/c Dr. 1200
      • Capital Cr. 20,000 Chetan A/c Cr. 1200
      • Bank A/c Dr. 12,000 Discount Dr. 50
      • Bank A/c Cr. 3,000 Discrount Cr. 20
      • Sales A/c Cr. 3,000 Vinay A/c Dr. 1000
      • Purchases Dr. 1200 Vinay A/c Cr 1000
      • Drawings Dr. 800 Salaries Dr 2000
      • Commission Cr. 600
    • Solution: Trial Balance as on 31-3-1998 11,580 20,000 3,000 3,000 400 1,200 22,550 12,000 1,200 1,200 Cash A/c Capital A/c Bank A/c Sales A/c Purchases A/c Chetan’s A/c 1 2 3 4 5 6 Credit Rs. Debit Rs. LF Name of the Account Sl No
    • Solution (contd..) 20 1,000 --- --- 600 40,800 50 1,000 800 2,000 --- 40,800 Discount A/c Vinay A/c Drawings A/c Salaries A/c Commission A/c 7 8 9 10 11 Credit Rs. Debit Rs. LF Name of the Account Sl No
    • Summary
      • In preparing trial balance under totals methods, debit and credit totals of each account is taken.
      • This method is out of use since it is not scientific .
      • Quiz
      • Trial Balance is a link between
      • a) Journal and ledger
      • b) Ledger and final accounts
      • c) None of the above
    • Frequently Asked Questions
      • What is trial balance.
      • Write short notes on Different methods of preparing Trial Balance
      • List the aims or objectives of preparing trial balance