The document provides information on trial balances, including what a trial balance is, how it is prepared, and its purpose. Specifically:
- A trial balance is a statement that shows debit and credit balances of all ledger accounts to check the arithmetic accuracy of accounts. The total debits and credits should be equal.
- There are different methods to prepare a trial balance, including the total method, balance method, and totals-cum-balances method.
- A trial balance is needed to check for errors in accounting records, which can be errors of principle, clerical errors like errors of omission, commission, and compensating errors.
- A trial balance can disclose errors of partial omission, casting, carrying forward
A trial balance is an accounting statement prepared to demonstrate the accuracy and correctness of total balances of debits and credits of all ledger accounts. This presentation is dedicated by Innoclazz Academy
A trial balance is an accounting statement prepared to demonstrate the accuracy and correctness of total balances of debits and credits of all ledger accounts. This presentation is dedicated by Innoclazz Academy
This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
Both the chapters journal and ledger along with the accounting cycle is resent in the PPT with their formats. It makes the learning of the chapters easy for an accountancy student.
Kilcoyne & Co Accountants are a firm of professionals Dublin Accountants, working to provide a range of accountancy services to Companies & Private Individuals.
BASIC ACCOUNTING FOR ALL INCLUDING MANAGERS. ACCOUNTING, DOUBLE ENTRY SYSTEM, JOURNEL (defination,advantages/limitations, how to make,) TRAIL BALANCE(defination,limitations/advantages, steps}
what is trial balance class 11
Meaning And Definition of Trial Balance
Various accounts are opened in the ledger and after recording the journal entries in it, their ‘balance’ or ‘balance’ is worked out. For the purpose of ascertaining the mathematical correctness of the accounts, ‘Trial Balance’ is prepared. Trial Balance is also called ‘Examination List’.
“A Trial Balance is a Summary of Ledger”. It is the list in which balances of all the accounts of a ledger and cash book are kept. It is considered when the sum of the amounts of debit side and credit side are equal. That the accounts are mathematically correct. In short, the reconciliation of trial balance is regarded as proof of the mathematical correctness of the books of account. It is created on a certain date.
Following are some of the major definitions of ‘Trial Balance
According of William Pickles — “Trial Balance accounts opened in the ledger at the end of the financial year or on any other date is the list of balances that is made to check whether the debit total is in fact the same as the credit total.’ ,
According to Spicer & Pegler — ” When at a given Date all the postings are complete (that is, the double entries of all the transactions are Complete), a schedule of the Balances is Prepared. This schedule is called the Trial Balance”
According to Carter — ” Trial Balance is a Statement of Debit and Credit balances derived from Ledger, including balances of Cash And Bank taken from Cash Book”
Ideal definition – “Balance is the list of debit and credit totals or account balances of various accounts of the ledger which is made for the purpose of ascertaining the arithmetical accuracy of the account on a certain date.”
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This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
Both the chapters journal and ledger along with the accounting cycle is resent in the PPT with their formats. It makes the learning of the chapters easy for an accountancy student.
Kilcoyne & Co Accountants are a firm of professionals Dublin Accountants, working to provide a range of accountancy services to Companies & Private Individuals.
BASIC ACCOUNTING FOR ALL INCLUDING MANAGERS. ACCOUNTING, DOUBLE ENTRY SYSTEM, JOURNEL (defination,advantages/limitations, how to make,) TRAIL BALANCE(defination,limitations/advantages, steps}
what is trial balance class 11
Meaning And Definition of Trial Balance
Various accounts are opened in the ledger and after recording the journal entries in it, their ‘balance’ or ‘balance’ is worked out. For the purpose of ascertaining the mathematical correctness of the accounts, ‘Trial Balance’ is prepared. Trial Balance is also called ‘Examination List’.
“A Trial Balance is a Summary of Ledger”. It is the list in which balances of all the accounts of a ledger and cash book are kept. It is considered when the sum of the amounts of debit side and credit side are equal. That the accounts are mathematically correct. In short, the reconciliation of trial balance is regarded as proof of the mathematical correctness of the books of account. It is created on a certain date.
Following are some of the major definitions of ‘Trial Balance
According of William Pickles — “Trial Balance accounts opened in the ledger at the end of the financial year or on any other date is the list of balances that is made to check whether the debit total is in fact the same as the credit total.’ ,
According to Spicer & Pegler — ” When at a given Date all the postings are complete (that is, the double entries of all the transactions are Complete), a schedule of the Balances is Prepared. This schedule is called the Trial Balance”
According to Carter — ” Trial Balance is a Statement of Debit and Credit balances derived from Ledger, including balances of Cash And Bank taken from Cash Book”
Ideal definition – “Balance is the list of debit and credit totals or account balances of various accounts of the ledger which is made for the purpose of ascertaining the arithmetical accuracy of the account on a certain date.”
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What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
2. TRIAL BALANCE: MEANING AND METHOD
Trial balance is a statement which shows debit balances and credit balances of all accounts in the ledger. Since, every debit
should have a corresponding credit as per the rules of double entry system, the total of the debit balances and credit
balances should tally (agree). In case, there is a difference, one has to check the correctness of the balances brought
forward from the respective accounts. Trial balance can be prepared in any date provided accounts are balanced.
Methods
A trial balance can be prepared in the following methods.
i. The Total Method :According to this method, the total amount of the debit side of the ledger accounts and the total
amount of the credit side of the ledger accounts are recorded.
ii. The Balance Method :In this method, only the balances of an account either debit or credit, as the case may be, are
recorded against their respective accounts. The balance method is more widely used, as it supplies ready figures for
preparing the final accounts.
iii. Totals-cum-balances Method: This method is a combination of totals method and balances method. Under this method
four columns for amount are prepared. Two columns for writing the debit and credit totals of various accounts and two
columns for writing the debit and credit balances of these accounts. However, this method is also not used in practice
because it is time consuming and hardly serves any additional or special purpose.
3. TRIAL BALANCE:
Issue of Sundry Debtors and Sundry Creditors: In the ledger there are many personal accounts, some of them
may show debit balances, some others may show credit balances. If all the names are to be written in the trial
balance it will be unduly long. Therefore, a list of names with the debit balances is prepared. This list is known
as ‘Sundry Debtors’ (Sundry means ‘many’). Similarly, a list of names with the credit balances is prepared. This
list is known as ‘Sundry Creditors’.
4. Format : Trial Balance
Trial Balance of ABC as on ……………….
Sl.No Name of Account L.F. Debit Balance
Rs
Credit Balance
Rs
Note:
i. Date on which trial balance is prepared should be mentioned at the top.
ii. Name of Account column contains the list of all ledger accounts.
iii. Ledger folio of the respective account is entered in the next column.
iv. In the debit column, debit balance of the respective account is entered.
v. Credit balance of the respective account is written in the credit column.
vi. The last two columns are totalled at the end.
5. NEED FOR TRIAL BALANCE
The trial balance is prepared to check the arithmetical accuracy of accounts. If the trial balance does not tally,
it implies there are arithmetical errors in the accounts which requires location, detection and rectification
thereof. Even if the trial balance tallies, there may still exist some errors. There are tow types of errors such
as: errors which are not revealed by the trial balance and (b) errors which are revealed by the trial balance.
Keeping in view the nature of errors, all the errors committed in the accounting process can be classified into
two.
i. Errors of Principle
ii. Clerical Errors
Errors of Principle: Transactions are recorded as per generally accepted accounting principles. If any of
these principles is violated or ignored, errors resulting from such violation are known as errors of principle.
For example, purchase of assets recorded in the purchases book. It is an error of principle, because the
purchases book is meant for recording credit purchases of goods meant for resale and not fixed assets. A
trial balance will not disclose errors of principle.
6. NEED FOR TRIAL BALANCE contd.
Clerical Errors: These errors arise because of mistakes committed in the ordinary course of accounting work. These can
be further classified into three types as follows.
o Errors of Omission : This error arises when a transaction is completely or partially omitted to be recorded in the books
of accounts. Errors of omission may be classified as below
Error of Complete Omission: This error arises when a transaction is totally omitted to be recorded in the books of
accounts. For example, Goods purchased from Ram completely omitted to be recorded. This error does not affect the
trial balance.
Error of Partial Omission: This error arises when only one aspect of the transaction either debit or credit is recorded.
For example, a credit sale of goods to Siva recorded in sales book but omitted to be posted in Siva’s account. This error
affects the trial balance.
o Errors of Commission: This error arises due to wrong recording, wrong posting, wrong casting, wrong balancing, wrong
carrying forward etc. Errors of commission may be classified as follows:
Error of Recording: This error arises when a transaction is wrongly recorded in the books of original entry. For example,
Goods of Rs.5,000, purchased on credit from Viji, is recorded in the book for Rs.5,500. This error does not affect the trial
balance.
Error of Posting: This error arises when information recorded in the books of original entry are wrongly entered in the
ledger. Example, credit account is recorded in credit side of ledger account.
7. Error of Casting (Totalling) :This error arises when a mistake is committed while totalling the subsidiary book. For
example, instead of Rs.12,000 it may be wrongly totalled as Rs.13,000. This is called overcasting. If it is wrongly totalled
as Rs.11,000, it is called undercasting.
Error of Carrying Forward :This error arises when a mistake is committed in carrying forward a total of one page to the
next page. For example, Total of purchase book in page 282 of the ledger Rs.10,686, while carrying forward the balance
to the next page it was recorded as Rs.10,866.
Compensating Errors: The errors arising from excess debits or under debits of accounts being neutralised by the excess
credits or under credits to the same extent of some other account is compensating error. Since the errors in one
direction are compensated by errors in another direction, arithmetical accuracy of the trial balance is not at all affected
in spite of such errors. For example, If the purchases book and sales book are both overcast (excess totalling) by
Rs.10,000, the errors mutually compensate each other. This error will not affect the agreement of trial balance.
NEED FOR TRIAL BALANCE contd.
8. ERRORS DISCLOSED AND NOT DISCLOSED BY TRIAL BALANCE
If the impact of the errors on trial balance is considered, errors may be classified into two categories – Errors
disclosed by trial balance, and Errors not disclosed by trial balance.
Errors disclosed by trial balance
Errors of partial omission
Errors of casting
Errors of carrying forward
Errors of posting in the wrong side of the correct account
Errors of posting to correct account with wrong amount
Double posting in the same account
Errors not disclosed by trial balance
Errors of complete omission
Errors of recording
Errors of principle
Errors of posting to wrong account in the right side with the correct amount
Compensating Errors
9. LEDGER POSTING FORM JOURNAL
Example 1: Pass the following journal entries and post them in ledger account and prepare a trial balance using : (i) Totals
method, (ii) Balances method, (iii) Totals-cum-Balances method
2005
Jan 1: Started business with cash Rs 20, 000
Jan 3: Purchased goods from Navneet Rs 5000
Jan 6: Paid to Navneet Rs 4900
Discount Allowed Rs 100
Jan 9: Purchased Furniture Rs 2000
Jan 12: paid salaries Rs 1000
Jan 15 : Rent received Rs 500
Jan 18: Sold goods To Kartikeya Rs 4000
10. Date Particular L.F. Debit
Amount (Rs)
Credit
Amount (Rs)
2014
Jan 1
Cash A/C Dr
To Capital A/C
(started business)
20000
5000
5000
2000
20000
5000
4900
100
2000
Jan 3 Purchase A/C Dr
To Navneet A/C
(Purchased goods from Navneet for cash)
Jan 6 Navneet’s A/C Dr
To Cash A/C
To Discount Received A/C
(Amount paid to Navneet who allowed Discount )
Jan 9 Furniture To A/C Dr
To Cash A/C
(Furniture Purchased for cash )
Balance c/d
Journal
Example 1 contd.
11. Balance b/d
Jan 12 Salaries A/C Dr
To Cash A/C
(payment of salaries )
1000
500
4000
1000
5000
4000
Jan 15 Cash A/C Dr
To Rent A/C
(Rent received )
Jan 18 Kartikeya’s A/C Dr
To Sales A/C
(sold goods to Kartikeya)
Journal
Example 1 contd.
12. Cash Account
Dr Cr
Date Particulars J.F. Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
2005
Jan1
Jan 15
Feb 1
To Capital A/C
To Rent A/C
To Balance b/d
20000
500
2005
Jan 6
Jan 9
Jan 12
Jan 31
By Navneet A/C By
Furniture A/C
By Salaries A/C
By Balance c/d
4900
2000
1000
12 600
20500 20500
12 600
Example 1 contd.
Ledger posting from Journal
Ledger
13. Capital Account
Dr Cr
Date Particulars J.F. Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
2005
Jan 31 To Balanced c/d 20000
2005
Jan1
Feb 1
By cash A/C
By Balance b/d
20000
20000 20000
20000
Example 1 contd.
14. Purchase Account
Dr Cr
Date Particulars J.F. Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
2005
Jan 3
Feb 1
To Navneet’s A/C
To Balance b/d
5000
2005
Jan 31 By Balance c/d 5000
5000 5000
5000
Example 1 contd.
15. Navneet’s Account
Dr Cr
Date Particulars J.F
.
Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
2005
Jan6 To Cash A/C
To Discount Received A/C
4900
100
2005
Jan 3 By Purchase A/C 5000
5000 5000
Example 1 contd.
16. Discount Received Account
Dr Cr
Date Particulars J.F. Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
2005
Jan 31 To Balance c/d 100
2005
Jan 6
Feb 1
By Navneet’s A/C
By Balance b/d
100
100 100
100
Example 1 contd.
17. Furniture Account
Dr Cr
Date Particulars J.F. Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
2005
Jan 9
Feb 1
To Cash A/C
To Balance b/d
2000
2005
Jan 31 By balance c/d 2000
2000 2000
2000
Example 1 contd.
18. Salaries Account
Dr Cr
Date Particulars J.F. Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
2005
Jan 12
Feb 31
To Cash A/C
To Balance b/d
1000
2005
Jan 31 By balance c/d 1000
1000 1000
1000
Example 1 contd.
19. Rent Received Account
Dr Cr
Date Particulars J.F. Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
2005
Jan 31 To balance c/d 500
2005
Jan 15
Feb 1
By Cash A/C
By Balance b/d
500
500 500
500
Example 1 contd.
20. Kartikeya’s Account
Dr Cr
Date Particulars J.F. Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
2005
Jan 18
Feb 1
To Sales A/c
To Balance b/d
4000
2005
Jan 31 By Balance c/d 4000
4000 4000
4000
Example 1 contd.
21. Sales Account
Dr Cr
Date Particulars J.F. Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
2005
Jan 31 To Balance c/d 4000
2005
Jan 18
Feb 1
By Kartikeya’s A/C
By Balance b/d
4000
4000 4000
4000
Example 1 contd.
22. i. Trial Balance as on 31st March, 2005 (using balance method)
Sl.No Name of Account L.F. Debit Balance
Rs
Credit Balance
Rs
1.
2.
3.
4.
5.
6.
7.
8.
9.
Cash Account
Capital Account
Purchase Account
Discount Received Account
Furniture Account
Salaries Account
Rent Received Account
Kartikeya’s Account
Sales Account
20500
-----
5000
--
2000
1000
---
4000
---
20000
----
100
---
---
500
-----
4000
Total 24600 24600
BALANCES METHOD
23. ii. Trial Balance as on 31st March, 2005 (using Total Method)
Sl.No Name of Account L.F. Debit Total
Rs
Credit Total
Rs
1.
2.
3.
4.
5.
6.
7.
8.
9.
Cash Account
Capital Account
Purchase Account
Navneet’s Account
Discount Received Account
Furniture Account
Salaries Account
Rent Received Account
Kartikeya’s Account
Sales Account
20500
20000
5000
5000
100
2000
1000
500
2000
4000
20500
20000
5000
5000
100
2000
1000
500
2000
4000
Total 60100 60100
24. ii. Trial Balance as on 31st March, 2005 (Total cum Balance Method )
Sl.No Name of Account L.F. Debit Total
Rs
Credit Total
Rs
Debit
Balance
Rs
Credit Blance
Rs
1.
2.
3.
4.
5.
6.
7.
8.
9.
Cash Account
Capital Account
Purchase Account
Navneet’s Account
Discount Received Account
Furniture Account
Salaries Account
Rent Received Account
Kartikeya’s Account
Sales Account
20500
20000
5000
5000
100
2000
1000
500
2000
4000
20500
20000
5000
5000
100
2000
1000
500
2000
4000
12 600
-----
5000
--
2000
1000
---
4000
---
……..
20000
----
100
---
---
500
-----
4000
Total 60100 60100 24600 24600
25. Example2: The following balances were extracted from the ledger of Rahul on 31st March, 2003. You are requested to
prepare a trial balance as on that date in the proper form.
Drawings Rs 3,500
Returns Inward Rs 1,000
Cash at Bank Rs 1,090
Discount Allowed Rs 1,150
Returns Outward Rs 40
Rent and Rates Rs 3,220
Investments Rs 6,000
Salaries Rs 36,320
Purchases Rs 1,44,670
Sales Rs 1,73,500
Sundry Debtors Rs 1,430
Plant & Machinery Rs 34,300
Travelling Expenses Rs 2,630
Commission Paid Rs 1,880
Carriage Inward Rs 240
Stock on 1.4.2002 Rs 11,100
Sundry Creditors Rs 14,260
Repairs Rs 1670
Capital as on 1.4.2002 Rs 62,860
Sundry Expenses Rs 460
26. In the book of Rahul
Trial Balance as on 31st March, 2003
Sl.No Name of Account L.F. Debit Balance
Rs
Credit Balance
Rs
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Salaries
Purchases
Sales
Sundry Debtors
Plant & Machinery
Travelling Expenses
Commission Paid
Carriage Inward
Stock on 1.4.2002
Sundry Creditors
Repairs
Capital as on 1.4.2002
Sundry Expenses
Drawings
Returns Inward
Cash at Bank
Discount Allowed
Returns Outward
Rent and Rates
Investments
36,320
1,44,670
---
1,430
34,300
2,630
1,880
240
11,100
---
1670
---
460
3,500
1,000
1,090
1,150
---
3,220
6,000
---
---
1,73,500
---
---
---
---
---
---
14,260
---
62,860
---
---
---
---
---
40
---
---
Total 2,50,660 2,50,660
Example 2: Solution
27. SUSPENSE ACCOUNT
When it is difficult to locate the mistakes before preparing the final accounts, the difference in the trial balance is
transferred to newly opened imaginary and temporary account called ‘Suspense Account’. Suspense account is prepared to
avoid the delay in the preparation of final accounts. If the total debit balances of the trial balance exceeds the total credit
balances, the difference is transferred to the credit side of the suspense account. On the other hand, if the total credit
balances of the trial balance exceeds the total debit balances the difference is transferred to the debit side of the suspense
account.
When the errors affecting the suspense account are located, they are rectified with suspense account. Suspense account is
continued in the books until the errors are located and rectified. Such balance will be shown in the balance sheet. Debit
balance will be shown on the asset side and the credit balance will be shown on the liability side. When all the errors
affecting the trial balance are located and rectified, the suspense account automatically gets closed.
28. Example2: The following balances were extracted from the ledger of Rahul on 31st March, 2003. You are requested to
prepare a trial balance as on that date in the proper form.
Salaries Rs 36,320
Purchases Rs 1,44,670
Sales Rs 1,73,500
Sundry Debtors Rs 1,430
Plant & Machinery Rs 34,300
Travelling Expenses Rs 2,630
Commission Paid Rs 1,880
Carriage Inward Rs 240
Stock on 1.4.2002 Rs 11,100
Sundry Creditors Rs 14,260
Repairs Rs 1670
Capital as on 1.4.2002 Rs 62,500
Sundry Expenses Rs 460
Drawings Rs 3,500
Returns Inward Rs 1,000
Cash at Bank Rs 1,090
Discount Allowed Rs 1,150
Returns Outward Rs 40
Rent and Rates Rs 3,220
Investments Rs 6,000
29. Trial Balance as on 31st March, 2003
Sl.No Name of Account L.F. Debit Balance Rs Credit Balance Rs
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
Salaries
Purchases
Sales
Sundry Debtors
Plant & Machinery
Travelling Expenses
Commission Paid
Carriage Inward
Stock on 1.4.2002
Sundry Creditors
Repairs
Capital as on 1.4.2002
Sundry Expenses
Drawings
Returns Inward
Cash at Bank
Discount Allowed
Returns Outward
Rent and Rates
Investments
Suspense Account
36,320
1,44,670
---
1,430
34,300
2,630
1,880
240
11,100
---
1670
---
460
3,500
1,000
1,090
1,150
---
3,220
6,000
-----
---
---
1,73,500
---
---
---
---
---
---
14,260
---
62,500
---
---
---
---
---
40
---
---
360
Total 2,50,660 2,50,660
Example 3: Solution
Note : The difference in the Trial Balance is transferred to suspense account to avoid delay in the preparation of final accounts.
30. Precautions
• Bank Balance as per cash book should be taken in Trial Balance (not
bank balance as per pass book).
• Closing stock is not included in Trial Balance if it is not recorded in the
books of accounts through journal proper.
• Total debtors and total creditors prepared from ledger book.