–
Trial balance is prepared to check arithmetical accuracy of debit and credit balance.
If there is any error, it is rectified with journal entries.
Trial balance can be prepared at any time.
Generally, it is prepared at the end of every month.
But it can be prepared quarterly or half yearly.
It is compulsorily prepared at the close of every accounting period to verify the arithmetical accuracy of the ledger accounts.
SN. |
Debit (Dr) |
Amount |
Credit (Cr) |
Amount |
|
Assets: |
|
Capital and reserve: |
|
|
Goodwill |
xxxx |
Capital |
xxxx |
|
Land and building |
xxxx |
General reserve |
xxxx |
|
Plant and machinery |
xxxx |
Capital reserve |
xxxx |
|
Furniture and fitting |
xxxx |
Reserve fund |
xxxx |
|
Stock (inventory, merchandise) |
xxxx |
Reserve for bad debts (doubtful debts) |
xxxx |
|
Prepaid expenses |
xxxx |
Liabilities: |
|
|
Debtors (book debts) |
xxxx |
Creditors |
xxxx |
|
Bills receivable |
xxxx |
Bills payable |
xxxx |
|
Account receivable |
xxxx |
Account payable |
xxxx |
|
Accrued income |
xxxx |
Loan (10% Loan) |
xxxx |
|
Cash balance |
xxxx |
Outstanding expenses |
xxxx |
|
Bank balance |
xxxx |
Advance income |
xxxx |
|
Expenses: |
|
Revenue and income: |
|
|
Opening stock |
xxxx |
Sales |
xxxx |
|
Purchase |
xxxx |
Interest received |
xxxx |
|
Carriage inward/outward |
xxxx |
Discount received |
xxxx |
|
Purchase expenses |
xxxx |
Commission received |
xxxx |
|
Factory expenses |
xxxx |
Rent received |
xxxx |
|
Office expenses |
xxxx |
Bad debts received |
xxxx |
|
Selling expenses |
xxxx |
Other income |
xxxx |
|
Distribution expenses |
xxxx |
|
|
|
Financial expenses |
xxxx |
Gain: |
|
|
Bad debts |
xxxx |
Gain on sales of assets |
xxxx |
|
Discount allowed |
xxxx |
Gain on sales of investment |
xxxx |
|
Interest paid |
xxxx |
|
|
|
Commission paid |
xxxx |
Return: |
|
|
Rent paid |
xxxx |
Purchase return, return outward |
xxxx |
|
Other expenses |
xxxx |
|
|
|
Losses: |
|
|
|
|
Loss on sales of assets |
xxxx |
|
|
|
Loss on sales of investment |
xxxx |
|
|
|
Return: |
|
|
|
|
Sales return, return inward |
xxxx |
|
|
|
|
xxxx |
|
xxxxx |
Note: Generally closing stock is adjusted separately.
###########
Click on link for YouTube videos: |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance & Adjusted Trial Balance |
|
Final Accounts |
|
Government Accounting |
|
Goswara Voucher (Journal Voucher) |
###########
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country
PROBLEM: 2A
Salman Traders has following balances of ledger on 31st December 2019:
Ledger balances |
Amount |
Ledger balances |
Amount |
Opening stock |
30,000 |
Carriage inwards |
5,000 |
Plant and machinery |
80,000 |
Office salaries |
25,000 |
Furniture |
40,000 |
Bad debts |
500 |
Debtors |
80,000 |
General expenses |
1,500 |
Cash at bank |
26,000 |
Insurance for business |
2,000 |
Purchases |
200,000 |
Office rent |
20,000 |
Wages |
30,000 |
Drawings |
15,000 |
Capital |
150,000 |
Purchase returned |
10,000 |
Bank loan |
50,000 |
Reserve for bad debts |
2,000 |
Sundry creditors |
40,000 |
Discount received |
3,000 |
Sales |
300,000 |
|
|
Required: Trial balance
[Answer: Total 555,000]
SOLUTION
Trial balance of Salman Traders
Particulars |
Amount Dr |
Amount Cr |
|
Opening stock |
30,000 |
|
|
Plant and machinery |
80,000 |
|
|
Furniture |
40,000 |
|
|
Debtors |
80,000 |
|
|
Cash at bank |
26,000 |
|
|
Purchases |
200,000 |
|
|
Wages |
30,000 |
|
|
Capital |
|
150,000 |
|
Bank loan |
|
50,000 |
|
Sundry creditors |
|
40,000 |
|
Sales |
|
300,000 |
|
General expenses |
1,500 |
|
|
Insurance for business |
2,000 |
|
|
Office rent |
20,000 |
|
|
Drawings |
15,000 |
|
|
Purchase returned |
|
10,000 |
|
Reserve for bad debts |
|
2,000 |
|
Discount and commission |
|
3,000 |
|
Carriage inwards |
5,000 |
|
|
Office salaries |
25,000 |
|
|
Bad debts |
500 |
|
|
Total |
555,000 |
555,000 |
|
*******
PROBLEMS AND ANSWERS |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country
PROBLEM: 2A
XYZ Traders has following accounts balance on 31st December 2019:
Name of ledgers |
Amount |
Name of ledgers |
Amount |
Purchase |
310,000 |
Advance insurance |
3,300 |
Carriage |
5,000 |
Plant and machinery |
150,000 |
Salaries |
24,000 |
Bad debts |
2,000 |
Electricity charge |
4,500 |
Sundry debtors |
45,000 |
Travelling expenses |
8,900 |
Bills receivable |
30,000 |
Telephone expenses |
4,300 |
Cash in hand |
8,000 |
Advertisement |
10,000 |
Drawing |
10,000 |
Bank overdraft |
80,000 |
Sales |
300,000 |
Bills payable |
10,000 |
Advance rent |
20,000 |
Capital |
120,000 |
Creditors |
85,000 |
Required: Trial balance
[Answer: Total 615,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country
PROBLEM: 2B
The following is ledgers balances of AK Trading Concern on 31st December 2019:
Accounts heads |
Amount |
Accounts heads |
Amount |
Buildings |
200,000 |
Capital |
400,000 |
Drawings |
50,000 |
12% Loan |
50,000 |
Furniture |
30,000 |
Sales |
395,000 |
Creditors |
50,000 |
Bank balance |
10,500 |
Provision for bad debts |
2,500 |
Bills receivables |
40,000 |
Bills payables |
44,000 |
Return inward |
8,000 |
Return outward |
5,000 |
Salaries |
51,000 |
Vehicles |
50,000 |
Commission (Cr) |
3,000 |
Interest on loan |
3,000 |
Insurance |
5,000 |
Purchases |
242,000 |
Debtors |
100,000 |
Beginning stock |
130,000 |
Wages |
30,000 |
Required: Trial balance
[Answer: Total 949,500]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country
PROBLEM: 2C
The following ledger balances of AF Trading Concern for the year ending 31st December 2019 is given:
Ledger balances |
Amount |
Ledger balances |
Amount |
Land and Building |
15,000 |
Insurance |
900 |
Goodwill |
10,000 |
Debtors |
10,000 |
Drawing |
5,000 |
Salaries |
7,400 |
Freight on sales |
500 |
Wages |
3,000 |
Closing stock |
7,000 |
Sales return |
500 |
Discount allowed |
500 |
Purchases |
48,000 |
Cash at bank |
2,200 |
Opening stock |
12,000 |
Bad debts |
500 |
Unearned commission |
2,000 |
Purchase return |
1,500 |
Overdraft |
12,000 |
Sales |
90,000 |
Reserve of doubtful debts |
1,000 |
Capital |
45,000 |
Creditors |
13,000 |
Plant and machinery |
42,000 |
|
|
Required: Trial balance
[Answer: Total 164,500]
***** #EPOnlineStudy *****
Thank you for investing your time.
Please comment on article.
You can help me by sharing this article at your social media platform.
Jay Google, Jay YouTube, Jay Social Media
जय गूगल, जय युट्युब, जय सोशल मिडिया