At the end of each month, the accounts must be closed to determine closing balances and these closing balances are opening balances of the following month. All closing balances are collected and entered into the trial balance. This trial balance will be used to prepare final accounts, this will be explained in later chapters.

1. xd

2. CHAPTER 9
Opening T accounts using Microsoft excel
Steps
Open Microsoft excel
❶Select Cell A1
❷While in cell A1 press Shift Key on the keyboard and scroll to cell F1
while still holding down the shift key.

3. ❶Select Home ❷ Select Merge and Centre ❸Select borders
❹Under borders, select bottom border
❶home, select cell C2. While still holding down shift key move your
mouse cursor (pointer) down to cell C8
❷Under borders select the drop down
❸While on borders, select right border
Now that you have the T account
Write the word Cash account on cell A1,
❶note that text is alighed to the right
For your text to be on the centre of the T account
❷select align centre

4. Entering transations in T accounts using Microsoft excel
A worked example
20X2
July 1 Started business by depositing $20,000 into the bank
July 4 Withdrew $5,000 from the bank for personal use
July 8 Bought Land $10,000 Paying by Cheque
July 12 Bought Motor vehicle on credit LM Motors $15,000
July 15 Paid wages by cheque $3,000
July 1 Started business by depositing $20,000 into the bank
July 4 Withdrew $5,000 from the bank for personal use
July 8 Bought Land $10,000 Paying by Cheque
July 12 Bought Motor vehicle on credit LM Motors $15,000
July 15 Paid wages by cheque $3,000
July 1 Started business by depositing $20,000 into the bank
July 4 Withdrew $5,000 from the bank for personal use

5. July 8 Bought Land $10,000 Paying by Cheque
July 12 Bought Motor vehicle on credit LM Motors $15,000
July 15 Paid wages by cheque $3,000
July 1 Started business by depositing $20,000 into the bank
July 4 Withdrew $5,000 from the bank for personal use
July 8 Bought Land $10,000 Paying by Cheque
July 12 Bought Motor vehicle on credit LM Motors $15,000
July 15 Paid wages by cheque $3,000
July 1 Started business by depositing $20,000 into the bank
July 4 Withdrew $5,000 from the bank for personal use
July 8 Bought Land $10,000 Paying by Cheque
July 12 Bought Motor vehicle on credit LM Motors $15,000
July 15 Paid wages by cheque $3,000

7. Balancing off the accounts in Microsoft excel
With your mouse cursor (pointer) on cell F6 select drop down under
border
Under border select Top and Double Bottom Border
Select cell C6, select Top and Double Bottom Border as in above
With your mouse cursor still on cell C6 type equal sign =sum(then click
cell C3 to C6 close blacket then hit enter
Your formulae should look like this =sum(C3:C6)
Copy the formulae in cell C7 and paste in cell F7. Copying and pasting is
easy in excel, just press control key(ctrl) and C and the same time, the
formula will be copied. To paste select the cell where you want to paste,
then press control key and V at the same time, the contents will be
pasted in the desired cell
As you can see the totals are different, meaning there is a balance, of

8. $2,000 in this case.
To enter balance carried down, put your cursor on cell D6, write date of
31 July
Under cell E6 write balance c/d
On cell F6, insert formula. To do this, write equal sign then select cell C3
then write minus sign, open blacket the select cell F4 then drag your
mouse to cell F5 while still holding down the right click of the mouse,
then close the blacket. Your formula will look like this
=C3-SUM(F3:F5)
Select cell C8 while there write egual sign, select cell F6 then hit enter,
the balance on cell F6 will be copied to C8
On cell A8 write date of 1 August , on cell B8 write balance b/d (Balance
brought down)
Your excel will now look like this
Now let’s balance the remaining accounts
Capital account

9. Under bank account copy cell A2 to C2 and paste in cell A12 year and
currency will be copied into the capital account
Write date of 31 July in cell A13
Write balance c/d in cell B13
Write equal sign in cell C13, celect cell F20 and hit enter, contents of
Cell F13 will be copied to cell C13
Select cell D14 and write 1 August
Select cell E14 and write balance c/d
Select cell F14 and write equal sign, select cell C13 then hit enter,
contents of C13 will be copied to cell F14
To underline totals, select cell C13, select drop down under Borders
Under borders select Bottom Double Border
Do the same under cell F13
Now practice with the remaining accounts below

11. To prepare trial balance, first you need to prepare the accounts, balance
off the account, these accounts will be used to prepare the trial balance.
This is so because trial balance is a list of balances.

12. As you can see, all assets and expenses have debit balances. Capital
and liabilities have credit balances.This is so because of double entry
system discussed earlier.

15. ABOUT THE AUTHOR
Davie Kaliu was born and raised in Malawi, a country
in the southern part of Africa.
He is married to Lucina and together they have three
children, two boys; Tony and Davie Jr, and a girl
Evalister. He also looks after three high school
children.
He studied accounting and spent early years of his
carrier as a high school accounting teacher.
When he is not writing books, he is writing poetry or
growing vegetables
He has plans to write computer and fiction books.
More books coming your way, get ready.
+265 881123815
kaliudavie2018@gmail.com
dkaliu@yahoo.com
Also by the same author
 Double entry book keeping using T accounts.
 Revenue and Expenditure.
 Drawings.
 Balancing off the accounts.
 Balancing off the accounts using Microsoft excel
 Final accounts of a sole trader.
 Preparation of final accounts using Microsoft excel
 Depreciation of fixed assets.
 Bad debts and Provision for bad debts.
 The cashbook.
 Preparation of cashbook using Microsoft excel.
 The petty cashbook.
 Preparation of Petty cashbook using Microsoft excel.
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