Chapter 7 Book-keeping The Trial Balance Students

Book-keeping The Trial Balance

Chapter 7

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Learning Objective 1

Understand why the trial balance totals should equal one another

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Learning the trial balance totals should equal one another

Total debit entries = Total credit entries • For each debit entry there is a credit entry. • For each credit entry there is a debit entry.

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Trial Balance A worked example

Exercise Exercise 7.3X: 7.3X: -- Record Record transactions transactions in in the the books books of of C C Hilton; Hilton; -- Balance Balance off off the the accounts; accounts; -- Extract Extract aa trial trial balance balance as as at at 30 30 June June 2006. 2006.

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Trial Balance A worked example 7.3

June June11CCHilton Hiltonstarted startedin inbusiness businesswith with₤9,000 ₤9,000in incash cash

Homework for students before Lecture book-keeping on Wednesday 3 December: Make double entry on accounts of worked example 7.3

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Trial Balance A worked example 7.3

June June22Paid Paid₤8,000 ₤8,000of ofthe thecash cashinto intoaabank bankaccount account

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Trial Balance: a worked example 7.3

June June44Paid Paidrent rentfor forshop shop₤300 ₤300by bycheque cheque

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Trial Balance: a worked example 7.3

June June66Bought Boughtgoods goodson oncredit creditfrom fromMoorlands Moorlands&&Co. Co.₤675; ₤675; JJSwain Swain₤312; ₤312;BBMerton Merton₤225 ₤225

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Trial Balance: a worked example 7.3

June June12 12Sold Soldgoods goodsfor forcash, cash,₤450 ₤450

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Trial Balance: a worked example 7.3

June June13 13Bought Boughtfixtures, fixtures,paying payingby bycheque, cheque,₤230 ₤230

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Trial Balance: a worked example 7.3

June June15 15Sold Soldgoods goodson oncredit creditTTGreen Green₤180; ₤180;KKWood Wood₤367; ₤367; PPBrown Brown₤256 ₤256

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Trial Balance: a worked example 7.3

June June18 18Sold Soldgoods goodsfor forcash, cash,₤220 ₤220

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Trial Balance: a worked example 7.3

June June20 20Paid PaidMoorlands Moorlands&&Co Coby bycheque cheque₤675 ₤675and and BBMerton Merton₤225 ₤225

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Trial Balance: a worked example 7.3

June June21 21Returned Returnedgoods goodsto toJJSwain Swain₤112 ₤112and andpaid paidthe theoutstanding outstanding balance balanceon ontheir theiraccount accountby bycheque cheque

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Trial Balance: a worked example 7.3

June June24 24Bought Boughtgoods goodson oncredit creditfrom fromMoorlands Moorlands&&Co Co₤220 ₤220and and JJSwain Swain₤92 ₤92

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Trial Balance: a worked example 7.3

June June26 26Paid Paidwages wagesin incash, cash,₤366 ₤366

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Trial Balance: a worked example 7.3

June June27 27Cash Cashdrawings, drawings,₤200 ₤200

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Trial Balance: a worked example 7.3

June June29 29Bought Boughtmotor motorvan, van,paying payingby bycheque, cheque,₤4,000 ₤4,000

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Trial Balance: a worked example 7.3

June June30 30Sold Soldgoods goodson oncredit creditto toTTGreen Green₤300; ₤300;KKWood Wood₤50; ₤50; PPBrown Brown₤60 ₤60

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Trial Balance: a worked example 7.3

June June30 30Received Receivedcheques chequesfrom fromthe thefollowing: following:TTGreen Green₤180; ₤180; KKWood Wood₤367 ₤367

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A worked example 7.3: balancing off Cash account

Debit June 1 Capit

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A worked example 7.3: balancing off Bank account

Debit June 2 Cash June 30 T Green June 30 K Wood

Bank £8,000 June 4 Rent £180 June 13 Fixtures £367 June 20 Moorlands & Co June 20 B Merton June 21 J Swain June 29 Motor van June 30 Balance c/d £8,547

July 1 Balance b/d

£2,917

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma

Credit £300 £230 £675 £225 £200 £4,000 £2,917 £8,547

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Learning Objective 2

Draw up a trial balance from a given set of accounts

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A worked example 7.3: learning draw up a trial balance

Trial bal

Cash

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End of Chapter 7: The Trial Balance

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 2007

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