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Trial balance
- 1. SUBMITTED TO :- Dr.Sunil Kumar Verma SUBMITTED BY :- Gurkirat Singh
- 2. According to Spicerand Pegler- “ A trial balance is a list of all the balances standing on the ledger accounts and cash book of the concern at any given date.” Thus Trial Balance is a statement of the debit and credit totals or balances of the ledger arranged in separate colomns.
- 3. • Testing ofarithmetic accuracy. • To help in preparing Financial statements. • Helps in locating errors. • Help in comparison. • Help in making adjustments.
- 4. Errors which arenot disclosed by Trial Balance: • Error of omission • Error in original record • Errors of Principle • Compensatory Errors • Complete reversal Entry
- 5. The difference oftwo sides of an account is called balance.
- 6. Note: Balances ofDebit and Credit side Should be Equal on a particular date.
- 8. Rs. Rs. Capital 20000Discount(Dr.) 120 Cash 800 Salaries 1860 Opening stock 3000 Furniture 1100 Commission(Dr.) 250 Wages 4860 Purchases 8900 Sales 20480 Bank 2550 Rent 1260 Drawings 620 Debtors 13520 Trade expenses 2460 Machinery 3300 Creditors 4420 Advertisement 300 The following balances are extracted from the books of Mohan Kumar on 31 march, 2010. Prepare a Trial Balance from these balances.
- 9. Name of theaccounts Dr. Balance Name of the Account Cr. balance Cash 800 Capital 20000 Commission 250 Sales 20480 Purchases 8900 Creditors 4420 Bank 2550 Drawing 620 Discount 120 Salaries 1860 Furniture 1100 Wages 4860 Rent 1260 Debtors 13520 Trade expenses 2460 Machinery 3300 Advertisement 300 Stock (opening) 3000 44900 44900 Trial Balance As on 31 march, 2010