Let us understand the concept and importance of a trial balance and a balance sheet, before learning about their differences.Concept of Trial balanceCompany's accounting department will generate this internal report. Trial balance consists of the list of general ledger accounts and their balances. It shows the credit and debit balances ... Read More

BCO Company has following ledger balances. Prepare an unadjusted trial balance as on 1/1/2001.Cash balance − Rs.52000/-Account receivables − Rs. 80000/-Inventory − Rs.35000/-Accounts payable − Rs. 56000/-Long term liability − Rs. 95000/-Equity shares − Rs.15000/-Dividend paid − Rs.1500/-Revenue − Rs. 28450/-Cost of goods sold − Rs. 22000/-Rent − Rs.1750/-Wages − ... Read More

Preparing unadjusted trial balance is the third step in the accounting cycle. It is prepared after general ledger and before the adjusted trial balance.In this, all the balances of ledger accounts are listed. It is not suitable for preparing financial statements, balance sheets and income statements because it does not ... Read More

Refer the data given below to prepare an adjusted trial balance −CBS ltdTrial Balance 31-03-2007ParticularsDebit (in rupees)Credit (in rupees)Debtor200000Salary35000Rent55000Cash50000Sales250000Purchases60000Furniture25000Loan135000Creditors40000Total425000425000Adjustments are made in salary and rentSalary due = Rs. 55000Rent (refundable deposit) included = Rs. 30000Adjusted entriesThe adjusted entries are as follows −Salary accountTo balance b/d35000To outstanding salary55000By balance c/d900009000090000   Rent ... Read More

A report consists of balances of all general ledger balances for a period of time called trial balance. It includes all major items like assets, liabilities, revenues, equity, losses and gains. It shows debit balances and credit balances that are recorded in the general ledger at a particular time.This format ... Read More

In this trial balance, adjustments are made to initial balance to all the required accounts. Adjustments are made to an initial trial balance to bring the financial statements into compliance with GAAP (Generally Accepted Accounting principles) or IFRS (International Financial Reporting Standards). The adjusted trial balance is an internal report.Main ... Read More

Refer the following data to prepare the trial balance −Books of accountsParticularsAmount (in rupees)ParticularsAmount (in rupees)ParticularsAmount (in rupees)Cash in hand6000Sales257000Rent2500Cash at bank300000Purchases50000Drawings18000Sundry debtors25000Carriage inwards2500Stock12000Sundry creditors18000Salaries20000Capital A/c190000Bills receivables28000Marketing expenses3000Furniture's and fixtures6500Bills payable10000Insurance paid1500SolutionThe trial balance is given below −      XYZ ltd31/03/2009 Sl.NoAccount TitleBalancedebitCredit1Cash in hand60002Cash at bank3000003Sundry debtors250004Sundry ... Read More

Refer the data given below −Name of accountAmount (in rupees)Name of accountAmount (in rupees)BalancesTotal(credit)Total(debit)Cash in hand100002000010000Supplies3000Accounts receivable17500Revenue fee20000Accounts payable100020001000Note payable5000Revenue (unearned)800Common stock7000Furniture and fitting3500Machinery4000SolutionThe trial balance prepared by using total and balance method is given below -      TitleDD/MM/YYYY Sl.NoParticularsLedger folioTotalsBalancesdebitCreditdebitCredit1Cash200001100090002Supplies300030003Accounts receivable800080004Revenue (Fee)10000100005Account payable500015000100006Note payable250025007Revenue (unearned)100010008Common stock350035009Furniture and ... Read More

This method is used rarely because it duplicates the work. In this method, both balances and totals of debit and credit sides are tabulated in separate columns. Debit totals are recorded in the debit total column and credit totals are recorded in the credit column separately. Similarly, debit balances are ... Read More

Refer the data given below −Name of accountAmount (in rupees)Name of accountAmount (in rupees)Cash (debit)25000Supplies1600Accounts receivable7000Revenue fee15500Accounts payable (debit)5600Note payable8200Revenue (unearned)4400Common stock10500Furniture and fitting3500Machinery6000Cash (Credit)6500Account payable (credit)3600SolutionGiven below is the trial balance by using totals method −      ABC ltd28/02/2001 Sl.NoName of AccountLedger folioBalancedebitCredit1Cash2500065002Supplies16003Accounts receivables70004Revenue (Fee)155005Account payable560036006Note payable82007Unearned ... Read More