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    4.3 Trial Balance

    Uploaded by

    Afiqah Alia
    A trial balance is a list of all ledger accounts and their balances on a particular date. It is prepared using the double entry system, where debits must equal credits. The purpose is to check the accuracy of recording, arithmetic, and posting between books and ledgers and to help locate errors and prepare financial statements. The format includes account names in columns for debits and credits with totals that must be equal.

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    4.3 Trial Balance

    Uploaded by

    Afiqah Alia
    39 views5 pages
    A trial balance is a list of all ledger accounts and their balances on a particular date. It is prepared using the double entry system, where debits must equal credits. The purpose is to check the accuracy of recording, arithmetic, and posting between books and ledgers and to help locate errors and prepare financial statements. The format includes account names in columns for debits and credits with totals that must be equal.

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    A trial balance is a list of all ledger accounts and their balances on a particular date. It is prepared using the double entry system, where debits must equal credits. The purpose is to check the accuracy of recording, arithmetic, and posting between books and ledgers and to help locate errors and prepare financial statements. The format includes account names in columns for debits and credits with totals that must be equal.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    39 views5 pages

    4.3 Trial Balance

    Uploaded by

    Afiqah Alia
    A trial balance is a list of all ledger accounts and their balances on a particular date. It is prepared using the double entry system, where debits must equal credits. The purpose is to check the accuracy of recording, arithmetic, and posting between books and ledgers and to help locate errors and prepare financial statements. The format includes account names in columns for debits and credits with totals that must be equal.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 5

    TOPIC 5 TRIAL BALANCE

    TRIAL BALANCE
    • A trial balance is a list of all ledger accounts with
    balances at a particular date.
    • All ledger accounts are recorded based on double entry
    system, meaning that when one account is debited
    another account will be credited with the same amount.
    • If this rule is executed correctly, the total amount of debit
    and credit column of the trial balance will be equal.
    (Note: All ledger accounts with zero balances are excluded)
    TRIAL BALANCE
    Purpose of the trial balance:
    check the accuracy of the recording process based on double
    entry system.
    check the arithmetical accuracy and posting from books of
    original entry to ledger accounts.
    helps to localize errors within a given time period.
    helps to facilitate the preparation of the financial
    statements.
    Format of Trial Balance
    NAME OF THE BUSINESS
    TRIAL BALANCE AS AT 31 DECEMBER 2018

    PARTICULARS/ACCOUNTS/LEDGERS DR CR

         

         

         

         

         

         

         

         

         

         

    TOTAL     
    BANK Amin Enterprise
    2018     2018     Trial Balance as at 31 December 2018
    1Jan Capital 50000 1Feb Furniture 2600
    5Jul Ahmad 150 15Oct Faiz 500 Accounts Debit Credit
          31 Dec Balance c/d 47050
        50150     50150 Bank 47050  
    2019 Balance b/d 47050       Capital   50000
    1 Jan
    Furniture 2600  
    CAPITAL
    Fixture & fittings 1000  
    Faiz   500
    2018 Balance 50000 2018    
    31 Dec c/d 1 Jan Bank 50000 Purchase 700  
        50000     50000
    Abu – accounts payable   500
          2019 Balance 50000
    1 Jan b/d Cash   185
    sales   270
    FURNITURE Electricity 70  
    2018    
    Dividend   15
    1 Feb Bank 2600 31 Dec Balance c/d 2600
        2600     2600 Drawings 50  
    2019 Balance b/d 2600      
    1 Jan
      51470 51470

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