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  • Presentation - Lesson 8 Trial Balance

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    The document discusses the trial balance, which contains debit and credit balances of all ledger accounts on a particular date. It explains the objectives of preparing a trial balance are to check accuracy, help prepare financial statements, locate errors, and allow for comparison and adjustments. The steps to prepare a trial balance are to ascertain account balances, write the accounts in the ledger column, and write debit/credit balances in the appropriate columns. There are three methods for preparing a trial balance: balance, total, and balance totals. An illustration is provided to demonstrate preparing a trial balance from sample ledger account balances.

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    The document discusses the trial balance, which contains debit and credit balances of all ledger accounts on a particular date. It explains the objectives of preparing a trial balance are to check accuracy, help prepare financial statements, locate errors, and allow for comparison and adjustments. The steps to prepare a trial balance are to ascertain account balances, write the accounts in the ledger column, and write debit/credit balances in the appropriate columns. There are three methods for preparing a trial balance: balance, total, and balance totals. An illustration is provided to demonstrate preparing a trial balance from sample ledger account balances.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    17 views12 pages

    Presentation - Lesson 8 Trial Balance

    Uploaded by

    lizelle
    The document discusses the trial balance, which contains debit and credit balances of all ledger accounts on a particular date. It explains the objectives of preparing a trial balance are to check accuracy, help prepare financial statements, locate errors, and allow for comparison and adjustments. The steps to prepare a trial balance are to ascertain account balances, write the accounts in the ledger column, and write debit/credit balances in the appropriate columns. There are three methods for preparing a trial balance: balance, total, and balance totals. An illustration is provided to demonstrate preparing a trial balance from sample ledger account balances.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    TRIAL BALANCE

    TRIAL BALANCE
     Trial Balance may be defined as a statement which
    contains balances of all ledger accounts on a
    particular date
     Trial Balance consists of a debit column with all
    debit balances of accounts and credit column with
    all credit balances of accounts.
    Objectives of Preparing a Trial
    Balance
     To check arithmetical accuracy
     To help in preparing Financial Statements
     Helps in locating errors
     Helps in comparison
     Helps in making adjustments
    Steps to prepare Trial Balance
     (i) At first ascertain the balance account wise of all
    the ledger accounts.
     (ii) Write the name of the ledger account in the
    ledger account column.
     (iii) Write against the name of the ledger account,
    the balance amount/total amount, debit
    balance/total in the debit column; and credit
    balance/ total in the credit column.
     (iv) Add the debit balance/total amount column and
    credit balance/total amount column.
    There are three methods of preparing
    Trial Balance
     (i) Balance Method
    In this Balance method, the balance of each account
    (which may be debit balance or credit balance) is
    extracted and written against each account; we
    write debit balance in the debit column and credit
    balance in the credit column.
    There are three methods of preparing
    Trial Balance
     (ii) Total Method
    In this method the total of both sides of every account
    in the ledger is written against the name of the
    respective account without bal
     (ii) Balance Totals Method

    Trial Balance is prepared by combining the first and


    second methods.
    Illustration 1 From the following ledger accounts
    of a trader closed as on 31st January, 2006,
    prepare Trial Balance.
    Illustration 1 From the following ledger
    accounts of a trader closed as on 31st
    January, 2006, prepare Trial Balance.
    Illustration 1 From the following ledger
    accounts of a trader closed as on 31st
    January, 2006, prepare Trial Balance.
    Illustration 1 From the following ledger
    accounts of a trader closed as on 31st
    January, 2006, prepare Trial Balance.
    Illustration 1 From the following ledger
    accounts of a trader closed as on 31st
    January, 2006, prepare Trial Balance.
    Illustration 1 From the following ledger
    accounts of a trader closed as on 31st
    January, 2006, prepare Trial Balance.

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