T RIAL BALANCE

MEANING OF TRIAL BALANCE

The third process in accounting cycle as discussed earlier in Chapter 1 refers to preparation
of Trial Balance. Pr~paration of 1!ial .Ba~ance_ is th~ first step. of summaris~tion ~refer t:o

:d counting definition m Chapter 1) 1n this direction. Trial balance 1s a statement 1n which debit
credit balances of all the accounts of ledger including cash and bank balances (taken from
cash book) are shown to test the arithmetical accuracy of the books of accounts. As every debit
has a corresponding credit, hence total of debit balances of trial balance is always equal to total
of its credit balances.
Books ofaccounts are closed at the end of the year, but they may be closed at any time according
to the requirements of the businessman. Whenever books are closed, balances are found out in various
accounts and then these balances are recorded in a statement which has four columns, namely,
particulars, ledger folio, debit balances and credit balances, this statement is called trial balance.
Tri,al Balance is a statement or list of Debit balances and Credit balances of the accounts
of ledger or of Debit totals and Credit totals of the accounts of ledger or of both balances and
totals of accounts of ledger. It is prepared at a certain interval of period which is mostly one
financial year.
OBJECTS OF PREPARING A TRIAL BALANCE
1. Financial Statements (Final account) namely trading account, profit and loss accmlnt
and balance sheet are prepared on the basis of trial balance.
2. To check the arithmetical accuracy of books of accounts.
3. The balance of any account of ledger can be easily and conveniently known by it.
4. If trial balance does not tally, it means that their are some errors in recording, posting
or balancing of accounts. The steps are taken to locate and rectify errors to tally the
trial balance before preparing financial statements.
5. Miscellaneous : Through trial balance, books of accounts are tested and it is only after
this test that final accounts are prepared. Just as before giving a driving licence, test
is necessary, before life insurance, medical test is necessary, before selection for
representing in Olympic games, fitness and qualifying test is necessary, before
prescribing medicines, blood test and other tests are necessary in some cases, in the ~
same way test of account books is necessary before preparation of final accounts, which
is done through trial balance.
:METHODS OF PREPARATION OF TRIAL BALANCE
Their are four methods for preparing a trial balance which are as follows:
1. Total Method : Under this method debit total and credit total of each account of ledger
are recorded in trial balance.
2. Balance Method : Under this method, only balance of each account ofledger is recorded
in trial balance. Some accounts may have debit balance and the other may have credit
balance. All these debit and credit balances are recorded in it.
3. 1btal and Balance Method : This is the combination of above two methods, i.e., under
this method both debit and credit total of each account and also balances of each
account are recorded.
 4. Eli mination of Equal Tot.al~ A1ethod : Those accounts whose _de~it totals are equal to
credit totals i .e. . the accounts '"'hich have no balances are ehm1nated. Such accounts
are not recorded in trial balance.
II lustrotion 1
From the fullowing transactions pass necessary journal entries in the books of Sudhir and Co. , Post
them into ledger and prepare trial balance according to all the methods :
2018 : April 1, Sudhir commenced business with cash t 40,000; May 5, Purchased goods t 25,000; May
20 . Sold goods ~ 30.000. August 10. Purcl1ased goods from Sohan t 18,000 ; August 25, Sold goods to Ramesh
'{ 20 .000: September 15. Cash given to Sohan ~ 18.000: September 28 , Cash received from Ramesh t 20,000·
NoY. 2. Purchased goods for cash from Dinesh ~ 19,000: Nov. 29, Withdrew for personal use t 500; 2019 '.
Jan ._10. Purchased goods from Dinesh ~ 17.000; Feb. 20, Paid cash to Dinesh t 16,980; allowed discount
by him~ 20; March 31. Paid salaries~ 500.
Solution 1 Journal Entries in the Books of Sudhir and Co.
Dr. Cr.
Dat.e Particulars L.F. Amount Amount
2018 t t
Apr. 1 Cash Ne ... ... Dr. 40,000
To Capital Ne 40,000
tBeing cash brought in for capital)
May5 Purchases Ne ... . .. Dr. 25,000
To Cash Ne 25,000
(Being goods purchased for cash)
May 20 Cash Ne ... ... Dr. 30,000

, Aug. 10
To Sales Ne
(Being sale of goods for cash)
Purchases Ne ... ... Dr. 18,000
30,000

To Sohan 18,000
(Being purchase of goods from Sohan)
Aug. 25 Ramesh ... . . . Dr. 20,000
To Sales Ne 20,000
I (Being sale of goods to Ramesh)
Sept. 15 Sohan ... .. . Dr. 18,000
To Cash Ne
(Being cash paid to Sohan)
18,000
Sept. 28 Cash Ne . .. . .. Dr.
To Ramesh 20,000
(Being cash received from Ramesh) 20,000
Nov. 2 Purchases Ne* ... ... Dr. 19,000
To Cash Ne
(Being purch ase of goods for cash from Dinesh) 19,000
Nov. 29 Drawings Ne ... ... Dr. 500
To Cash Ne
(Being cash withdrawn for personal use ) 500
2019 Purchases Ne .. . ... Dr.
Jan. 10 To Dinesh 17,000
(Being goods purchased from Dinesh) 17,000
Feb.20 Dinesh .. . ... Dr. 17,000
To Cash Ne
To Discount Ne 16,980
20
(Being cash paid to the extent oft 16 980 and dis t f
1 bv Dinesh) ' coun ° t 20 allowed
1
March 31 Salaries Ne .. . ... Dr. 500
To Cash Ne
I
500
(Being Salary paid)
Grand Total ~ 2.25 000 2 25 ooo
~
As i t is a cash transaction, hence name of Dinesh has not bee n recorded.
 TRlAL HALAN CE

Cuh Acet)u nt
r 20 m ?
To Capita1 N e
'lb SaJes Ale
40 ,000 May G By Purch0 B'-!B N e zr:i,ooo
~o.ooo &~pt. 1G By Boh;m lR,()()0
To Ramesh 20,000 Nov. 2 By Purch~ R Ale 19,000
Nov. 29 By Drawin gs Ale 500
2019
Feh. 20 By DineRh 16,98()
Ma r. 3 1 By 80.l ari es Ale 500
Mar. 3 1 By Balanc e c/d 1Q,020
Total ~ 90,000
2()19
Total t ~ _filM!l!L
A . 1 To Balanc e bid 10 020
Capita l Accou nt
2019 t 2018
M.ar. 31 To Balance dd t
, 4Q,OOO Apr. 1 By Ca.ah Ale 40,000
2019
A r. 1 B Balanc e b/d 40 000
Purch ases Accou nt
2018 f 2019
May 5 To Cash Ale f
25,000 Mar. 31 By Tradin g A/c 1 79,000
Aug. 10 ToSoh an 18,000 <Balance transfe rred)
Nov. 2 To Cash Ale 19,000
W19
Jan. 10 ToDin esh 17 000
Tot.al 79 000 Total 79,000
1 Balance of Purcha ses Accoun t iB a lways tran.Bferred to Trading Accoun t
which is prepare d to find out gross profit.
Sales Accou nt
?.019 f 2018
Mar. 31 ' To Tradin g A/c 1 f
50,000 May 20 By Cash Ale 30,000
<Balance transfe rred) ~ - ---1
Aug. 25 By Rames h 20,000
Total 50,000 Total 50,000
I Balance of Sales Accoun t is always tranEfe rred to Trading Accoun t
Soban
2018 f 2018 f
&pt. 15 To Cash Ale 18 000 Aug. 10 By Purcha ses Ale 18,000
Rame sh
2018 f 2018
Aug, 25 To Sales Ale 20 000 Sept. 28 By Cash Ale

Draw ings Accou nt

2018 f 2019 f
N'o-,. 29 To Cash Ale 500 Mar. 31 By Balance dd
201s, -----=-1 500

A. r. l To Balance bid 500

Dines h
~HJ f 2019
flt=b. 20 To Cash Ale 16,980 Jan . 10 By Purcha ses Ne 17,000
J.\ J,. 20 To Discount Ale 20
,- Total t 17,000
Total t
-17,000
 Discoun tAccount
~ 2019 ~
2019 \ . By Dinesh
Mar. 31 1 To P. & L. Ale
1 Feb. 20 20
\ (Balance TranAferred ) 20 -~-

l
I

Bnlance of Discoun t Ac<'ount tH tra n Aff' rred to; -I& L.. N e.

a ar1es Account

2019 I 'f 2019 '{

1
M ar. 31 To Cash Ne 500 Mar. 31 By P. & L. Ale
(Balance transferred) 500
- ·--=-

1 Balance of Salaries Account 1s tr an sferred to P. & L . Ne .

-
FIRST METHOD (i.e. , TOTAL METHOD)
Tria I Balance (as at 31st March 2019)
' -
Ledger Accounts Dr. Cr.
L.F.
- --- - Amount Amount
-
t r
Capital Ale - 40,000
Cash Ale 90,000 79,980 1
Purchases Ale
Sales Ale
79,000 -
- 50,000
Sohan
18,000 18,000
Ramesh
20,000 20,000
Drawings Ne
500 -
Dinesh
17,000 17,000
Discount Ale
Salaries Ale - 20
500 -
Total t 2,25,000 2,25,000
1 The amount of~ 79,980 is the real total of credit side of cash account.
Note : In this method, the total of debit and credit side of trial balance is same as of total of debit and credit side of
Journal on the basis of which the trial balance has been prepared.
SECOND METHOD (i.e., BALANCE METHOD)
Trial Balance (as at 31st March, 2019)
-
Ledger Accounts Dr. Cr.
L.F.
Amount Amount
-
Capital Ale t t
- 40,000
Cash Ale
Purchases Ale 10,020 -
Sales Ne 79,000 -
- 50,000
Drawings Ne
Discount Ne
500 -
- 20
Salaries Ne
Total
500 -
t 90,020 90,020

.te .. As there are no balances in the accounts of Sohan, Ramesh and Dinesh, hence they have not -
been recorded in
-=

the a bove trial balance.

 TH lRI) METHOD (i.e ., 'l'OTAL AND BAI ,ANCE METHOD )
Trial Balance tns nt 3 1st March , 201 9)
- D,: C,: Dr. Cr.
LMl.RfT Ac-counts L. F.
"' 1btal Total Balance Balance
-
- - ---
\ - '{ r t '{

Capital Ale
- 40,000 - 40,000
\
Cs.5h Ale 90,000 79,980 10,020 -
Purchases Ale 79,000 - 79,000 -
Sales Ne - 50,000 - 50,000
Sohan 18,000 18,000 - -
Ramesh 20,000 20,000 - -
Drawings Ne 500 - 500 -
Dinesh 17 ,000 17,000 - -
Discount Ale - 20 - 20
Salaries Ale 500 - 500 -
Total ~ 2,25,000 2,25,000 90,020 90,020

FOURTH METHOD (i.e., ELIMINATING ACCOUNTS OF EQUAL TOTALS)

Trial Balance (as at 31st March, 2019)
Dr. Cr.
Ledger Accounts L.F.
Amount Amount
~ t
Capital Ne - 40,000
I

Cash Ale 90,000 I 79,980

Purchases Ale 79,000 -
Sales Ale - 50,000
Drawings Ale 500 -
Discount Ale
Salaries Ale
-I 20
500 -
Total t 1,70,000 1,70,000
..
Note : A suspicion may arise by seeing the above tnal balance that here also the three accounts (Sohan, Ramesh and
Dinesh) have been ignored, which have been ignored in the second method, but it must be noticed that this trial
balance indicates totals and not balances of accounts.
lllUBtration 2
The following balances appeared in the books of Ashok as on 1st March, 2019 :
Assets : Cash t 50,000; Stock t 30,000; Debtors t 50,000; Machinery t 60,000 .
Liabilities : Creditors-Rajesh t 30,000.
Following transactions took place in March 2019 : March 4, Sold goods for cash~ 7,000 and on credit
'{ 3,000 to Ram; March 6, Ram returned goods for '{ 1,000; March 10, Purchased goods from Rajesh list
price t 10,000 valued at~ 9,000; March 15, Bought goods of the list price of~ 15,000 from Rakesh less 10%
'!'rade discount and 5% Cash discount and paid 40% price immediately; March 20, Paid to Rajesh f 38,600
in full settlement of his account; March 25, Paid t 500 for the Life Insurance Premium of the proprietor;
March 31, Received for commission'{ 2,000.
Pass journal entries for the above transactions post into ledger, Balance the account and prepare a
Trial Balance.
 FINANCIAL AC CO UN TIN G __
102

Sol utio n 2 IN TH E BOOKS OF ASH OK

--
Jou rna l En trie s
Dat e Parti-culars Am oun t Amount
L .F.
- - - - - - - --- -- -- -- - Dr. Cr.
2019 ~ -t
Ma r. 1 · Cas h Ne Dr. 50,0 00
Sto ck Ne Dr. 30,0 00
Deb tors Ne Dr. 50,0 00
1
Ma chin ery Ne Dr. 60,0 00
To Raj esh
30,00()
To Cap ital Ne
<Bein g open ing bala nces of asse ts and 1,60 ,00()
liab iliti es reco rded )
Ma r. 4 Cas h Ale Dr. 7,00 0
Ram Dr. 3,0 00
To Sal es Ale
(Bei ng good s sold ) 10,000
Ma r. 6 Sal es Ret urn s Ale
Dr. 1,00 0
ToR am
(Bei ng good s retu rned by Ram ) 1,000
Ma r. 10 Pur cha ses Ale
To Raj esh Dr. 9,00 0
(Bei ng good s purc hase d) 9,000
Ma r. 15 Pur cha ses Ale
To Cas h Ale Dr. 13,5 00
To Dis cou nt Ale 5,130
To Rak esh 270
(Bei ng good s purc hase d and disc oun
t rece ived ) 8,100
Ma r. 20 1
Raj esh
To Cas h Ale Dr. 39, 000
To Dis cou nt Ale 38,600
(Bei ng cash paid and disc oun t rece 400
ived )
Ma r. 25 Dra win gs Ale
To Cas h Ale Dr. 500
'. (Bei ng life insu ranc e prem ium paid 500
)
Mar . 31 Cas h Ale
To Com mis sion Ale Dr. 2,00 0
(Bei ng com miss ion rece ived ) 2,000
Tot al ~ 2 ,65,000 2.65 000
LED GE R OF ASH OK
Ca sh Acc oun t
Dat e I
Par ticu lars
I
J.F. Am oun t Dat e Par ticu lars
201 9 J.F. Am oun t
~ 201 9
Ma r. 1 To Bal anc e b/d ~
50,0 00 Ma r. 15 By Pur cha ses Ale
Ma r. 4 To Sal es Ale 5,130
7,00 0 Ma r. 20 By Raj esh
Ma r. 31 I To Com mis sion Ale 38,600
2,00 0 Ma r. 25 By Dra win gs Ale
I 500
Ma r. 31 By Bal anc e c/d 14,77Q__
59,0 00
Apr. 1 To Bal anc e b/d 59,000_
14,7 70
-
Sto ck Acc oun t
201 9
Ma r. 1 ~ 201 9 -t
To Bal anc e b/d
30,0 00 Ma r. 31 By Bal anc e c/d 30,0 00
Apr. 1 30.0 00 30 oo<L
To Bal anc e b/d
30 000
-
 10;.s
TRIAL BALANCE
Deb tors Acc oun t t
r 201 9 I 50,0 00
50,000 Ma r. 31 Ily Bal ance c/d 50..,000
/ 'lb Balance b/d
f
5OlOOO
'lb Balance bid 50 000
Mac hine Acc oun t t
t 2019 ~ 000
60,000 Ma r. 31 By Ba la nce c/d
To Bala nce b/d
6OJOOO l _§P,J)00_

To Balance b/d 60 000

R ·esh r
~ 2019 30,0 00
To Cash Ne 38,600 Mar. 1 By Bala nce bid ~ 000
To Discount Ale 400 Mar. 10 By Purc hase s Ale 39,0 00
39JOOO
Cap 1't a IAccou nt t
~ 2019 I
2019 By Bala nce b/d 11601000
160 ,000 Mar. 1
Mar. 31 'lb Balance dd 1,60 1000
1.60 000 1.60 .000
Anr. 1 Bv Bala nce b/d I

- Ram
2019
I
I
t
~
- 2019 1,00 0
'lb Sales Ale 3,000 Mar. 6 By Sales Returns Ne
Mar. 4 21000
Mar. 31 By Bala nce dd
I 3,00 0
3 000
I I
Apr. 1 1 To Balance b/d 2 000
Sale s Acc oun t
t 2019
I
I t
2019 I

4 By Cash Ale I 7,00 0

10,000 Mar.
Mar. 31 To Balance dd 32000
Mar. 4 ByR am
10.000
I 10,0 00
I
Aor. 1 Bv Bala nce b/d 10 000
I
Sale s Retu rns Acc oun t
~ 2019 t
2019 I 11000
1.000 Mar. 31 By Bala nce dd
Mar. 6 ToRam 1,00 0
I
1.000 I
_ Apr. 1 I To Balance b/d 1.000
Pur chas es Acc oun t
- 2019 I t 2019
. !
t
9,000 Mar. 31 By Bala nce dd I 22,5 00
Mar. 10 I To Rajesh
Mar. 15 To Cash Ale
1 5,130
Mar. l5 To Discount Ale
1
270 I

Mar. 15 To Rakesh 8,100

1

22,500
[ 22.i.c5OO
I 22,500
I I
A r. 1 I To Balance b/d I

Rak esh01_9_ - r - - - - - - - - - - - - r - - - , - - -t-

201a9- - , . . - - - - - - - -...- ---.- -__: ::.::::::~:;.==2~
Mar. 15 By P urch ases Alc __ 8 _
=- 100
Mar. 31 Th Balance dd _ 8 100
..:::..L _ 1
JLI 0Q
_ -8., 100_ 8100

Disc oun t Acc oun t t

2019 -
11ar 31 To Balance c/d
t 2019
Mar. 15 By Purc hase s Ale
I 270
· 400
670 Mar. 20 By Rajesh 670
670 670
"- -- Aor. 1 Bv Balance bid
 Drawings
~:
: ======================~F~IN
_04
~l A
AN::C:IAL:~~ Account
T(2C~C~O;~ ~ ======~~========~ ==~ ~ - -----
~/~T:IN: G
UNi
~ 2019 t
2019 I 500 Mar. 31 I By Balance dd ~
Mar. 25 To Cash Ne I 500 ~ I

I 500
Apr. 1 To Balance bid
Com.mission Account
~ 2019 I t
2019 2 ,ooo Mar. 31 By Cash Ale ~
Mar. 31 : To Balance c/d /= 2,0_QQ_
2 ODO
A r. 1 B Balance bid 2,000

Trial B al ance ason 31st March ' 2019) Balance Balanc;-

L.F. Dr.
Particulars Cr.
14,770 -
CashA/c 30,000
Stock Ale 50,000
Debtors Ale 60,000
Machinery Ale 1,60,000
Capital Ale 2,000
Ram 10,000
Sales Ale 1,000 I
Sales Returns Ale
Purchases Ale 22,500
Rakesh 8,100
I
Discount Ale 670
Drawings Ale 500 I
Commission Ale I 2,000
Total t 1.80.770 I 1.80.770

Illustration 3
Mohan is not very efficient in Book-Keeping. He has prepared the following trial balance and has
requested you that if it is correct accept it and ifit is wrong correct it and prepare it again:
Balances
Particulars L. F.
Dr. Cr.
t ' t
Mohan's Capital - 1,556
Mohan's Drawings 564 -
Leasehold Premises 741 I -
Sales 2,756
Due from Customers
Purchases
=1
1,268 I
530
-
Purchases Returns 264 I -
Loan from Bank - 250
Creditors 528 I -
Trade and Office Expenses 784 -
Cash at Bank 142 -
Bil.ls Payable
Salari e.s & Wages
100
598
-
-
~ · Stock - 264
R.en:rung
8 t and Taxes etc
ales Re t11rng ' ·
465 -
98
- 5,4~
t 5,454
-
 TRIAL BALANCE 105

'\ )
Solution 3
Corrected Trial Bala nce
)(r
i(i
L. F t r
Mohen 's Capita l 1.5f>6
Mohan's Draw1.n~s 564
""- Leasehold Premise~ 741
2,756
' Sale~
Due from C'ustorner-8 !i:-JO
Purchases 1.2n8
Purchases Return.s 264
' Loan from Ba nk 250
' Creditors 528
Trade a nd Office Expenses 784
Cash at Bank 142
Bills Payable 100
Salaries and Wages 59R
Opening St.ock 264
Rent & Taxes, etc. 465
Sales Returns 98
Total t 5,454 =, -154
'==

Illustration 4
Prepare a Trial Balance from the following balances as on 31st March, 2019 :
Particulars Amount Particulars .Amount
~ ~
Stock 1.4.2018 57,600 Capital 1,80 .000
Purchases 1,64,000 Drawings 8,800
Sales 3,20,000 Furniture 2.:t .000
Wages 32,320 Motor Car 1.60.000
Salaries 12,800 Cash in hand 9,400
Repair Charges 1,000 Bank Overdraft 50.800
Returns Inward 15,000 Investments "10,000
Returns Outward 11,200 Interest on Investments -! ,800
Carriage Inward 3,280
Carriage Outward 6,400
Commission Received 1,600
Sundry Debtors 48,400
Sundry Creditors 14,600
Solution 4 Trial Balance
<as at 3ht Marc:.h , 2019)
Bafo ruv BalanCt?
Pa rlicularB LF Dr Cr
t t
57,600
Stock (1.4.2018)
1,64 ,000
Purchases 3,20.000
Sales
~:l .320
Wages
12,800
Salaries
1,000
Repair Charges 15L009
Returns Inward --- -
106- - - - - - - - ------- FINANCIAL ACCOUNTING
-
Returns Outward 11,200
Carriage Inward
Carriage Outward
3~80
6 ,400
--
Commission Received 1,600
Sundry Debtors 48,400
Sundry ·C reditors 14,600
Capital 1,80,000
Drawings 8 ,800
Furniture 24,000
•
Motor Car 1,60,000
Cashin hand 9,400
Bank Overdraft 50,800
Investments 40,000
Interest on Investments 4800
'
Total
I 5_83,000 I 52832000
 PRACTICAL QL~ONS
Preparation of Trial Balance .
L Enter the foil~g transaction5 in Mfs Gaura, Stores journal and ledger and prepare tnal Balance :
2016 f 2016 t
Mar_ 1 ~ :1. •-L--h c:ommenced business
· wi·th ,._. ,,..1ar. 6 °~--eived Commi3sion 350
cash 3.600 ~lar. 7 Paid Salaries 400
Mar. 2 Purcha...~ goods fo r Cash 3,000 Mar. 8 Ga\-e Cash to Suresb 875
ifar. 3 Sold gocids for Cash 2 ,784 Mar 9 Sold goods to ~lohan 3,972
~1.ar. 4 Sold goods to Ra.mesh 500 ~far. 10 Gave cash to Ram 1,400
~ - 4 Purchased goods from Sbyam 6.000 Mar 11 Paid Sundry expenses 300
!d1a.r_ 4 Gave to Dinesh 426 ~1a.r 12 Purchased goods for Cash 1,000
~lar 5 ~ived Cash from Mohan 4 ,87 2 Mar 14 Sold g<~ to Sus hi} for Ca.sh 700
Mnr 30 Cr.i. ve Ca.,h to Prem 1,800
[Ans . Total of J ournal ? 31,979'; Total ofThal Bnlance according tor~ mf--thud t 18,806.1
Amendment of Trial Balance
2. Preira.rE correct trial balance from the followmg tnal bolanct w whieh thue are J!D!Stakes :
Dr. Cr .
C-Ost of goods sold
t ~
1,50,000
Cl08ing Stock
D6btors 40,000
Creditors 60,000
Fu.ed As&f:-!ts 30,000
Opening Stock 50 ,000
Expe~ 60,000
Salea 20,000
Cav1t.a1 2,00,000
00,000
IAni. TotaJ of Corrected Tnal Balanc& f ~.20 ,000 J f 3,50} )()0 3,50,000
fHtnt . As cost uf gOvd.8 sold iB gjven , hence opening otock. wtll be
in dth1t column.I ' · not recorded and e1osing stock vnH be recorded
3. ~ un.cler-rru:,nt1oned Trial Balance of MessTS Ras trw.n Broth
·
S-a.tru, corroc1.ly : · ~e;i ers has been wrongly drawn . You art to redraft the
Trial Balance
( a.9 at 31..Bt lforch , 2016>
O~nmg-Stock f
16,590 Capital
t
Sundry ~ht.ors 1,00,000
Fix.ed ABbet.8 20.670 CluSmg Stock
79,000 2.0,SS{}
Groo,; Purcb.a&ea Sundry CredJtors 12,)00
60,920 Gross Sales
l ,0:t.6tJO
 - ---- -
- Returns Inward 2,400 Returns Onward 1,230
Carriage (on purchases) 800 Carriage (on sales) 1,850
Import Duty 1,200 Export Duty 800
Wages and Salary 31,400 Bills Payable l . s,ooo
Bills Receivable 15,000 Interest Paid 1,100
Rent Received 3,800 Commission Received 870
Bank Overdraft 11,000 Discount Allowed 760
Cash in hand 380
Rates and Taxes 7,130
2,50,290 2,50,290

[Ans. Total of correct Trial Balance = f 2,40,000.]

[Hint. Closing Stock has forgott.en. It is assumed that journal entry and posting of closing stock has not recorded.
It is assumed adjustment. Capital, Sundry Creditors, Gross Sale, Purchase Returns, Bills Payable, Received
Commission, Received Rent, Overflow Overdraft is ent.er in the credit side.]
4. Following was the position of Rahul as on 1st March, 2016 :
Cash in hand f 1,00,000; Cash at Bank f 1,68,000; Furniture f 80,000; Stock f 50,000; Debtors-Ashok
f 10,000; AVI f 15,000; Creditors-Arun f 20,000; Anil f 30,000; Bank Loan f 2,00,000.
Following transactions took place during March 2016 :
Mar. 3, Received a cheque from Ashok in full settlement of his account after deducting 5% cash discount; Mar.
4, Deposited the above cheque into bank; Mar. 6, Goods purchased for f 10,000 at 10% Trade discount and 2%
Cash discount payment made by cheque; Mar. 8, Received a cheque from AVI for f 14,500 and discount allowed
to him f 500. Cheque deposited into the bank on the same day; Mar. 10, Cash paid to Arun after deducting 5%
Cash discount; Mar. 15, Sold goods to Mohan of the list price f 20,000 at a Trade discount 10%; Mar. 20, Mohan
returned goods of the list price f 5,000; Mar. 25, Bank charged f 100 for Bank charges; Mar. 31, Commission
received from Ram f 500.
Pass the necessary Journal Entries in the Journal, post them in his Ledger and prepare Trial Balance.
,. ~Ans. Total of Journal f 5,09,600; Capital f 1, 73,000; Trial Balance f 4,2 1,680.]