Trial balance

  • 1,202 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
1,202
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
89
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. TRIAL BALANCEDefinition:According to Spicer and Pegler“ A trial balance is a list of all the balances standing on theledger accounts and cash book of the concern at any givendate.”Thus Trial Balance is a statement of the debit and credittotals or balances of the ledger arranged in separatecolomns.
  • 2. Format of Trial Balance:Note: Balances of Debit and Credit side Should be Equal on a particular date.
  • 3. Objectives of preparing Trial Balance:1.Testing of arithmetic accuracy2.To help in preparing Financial statements3.Helps in locating errors4.Help in comparison5.Help in making adjustments.
  • 4. Is the Trial Balance a conclusive proof ofAccuracy?Errors which are not disclosed by Trial Balance:• Error of omission• Error in original record• Errors of Principle• Compensatory Errors• Complete reversal Entry
  • 5. Balance of AccountingThe difference of two sides of an account is called balance.
  • 6. Question:The following balances are extracted from the books ofMohan Kumar on 31 march, 2010. Prepare a Trial Balancefrom these balances. Rs. Rs.Capital 20000 Discount(Dr.) 120Cash 800 Salaries 1860Opening stock 3000 Furniture 1100Commission(Dr. 250 Wages 4860)Purchases 8900 Sales 20480Bank 2550 Rent 1260Drawings 620 Debtors 13520Trade expenses 2460 Machinery 3300Creditors 4420 Advertisement 300
  • 7. Trial Balance As on 31 march, 2010Name of the accounts Dr. Balance Name of the Account Cr. balanceCash 800 Capital 20000Commission 250 Sales 20480Purchases 8900 Creditors 4420Bank 2550Drawing 620Discount 120Salaries 1860Furniture 1100Wages 4860Rent 1260Debtors 13520Trade expenses 2460Machinery 3300Advertisement 300Stock (opening) 3000 44900 44900