TRIAL BALANCE
Can be defined as statement showing a list of debt (DR) and credit (CR) balances of account extracted from the ledger to check arithmetical accuracy of the double entry systems.
· Recording of business transactions at any given date.
The trial balance would appear as follows;-
TRIAL BALANCE AS AT ………….
|
S/N |
Name of account |
DR |
CR |
|
1 |
Cash |
XXX |
|
|
2 |
Capital |
|
XXX |
|
3 |
Purchases |
XXX |
|
|
4 |
Sales |
|
XXX |
|
5 |
Office cleaning |
XXX |
|
|
6 |
Carriage |
XXX |
|
|
9 |
Wages |
XXX |
|
|
|
|
XXX |
XXX |
|
|
|
|
|
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EXAMPLE.1
1. Hana commenced business on 1st June1980 with capital in cash 20,000.00
June, 2. Bought goods for cash 12,000.00
3. Bought furniture for cash 2,000.00
5. Paid transports charges 2,000.00
6. Cash sales 17,000.00
8. Bought goods for cash 15,000.00
10. Purchased goods for cash 5,000.00
12. Paid rent 800.00
15. Sold goods for cash 21,000.00
18. Sold goods for cash 3,000.00
20. Paid carriage 150.00
22. Paid wages 350.00
Required: Enter the above transactions in the ledgers, complete the double entry, balance the accounts at the end of the month and prepare a balance.
Solution
DR CASH ACCOUNT (L1) CR
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
1/6/1980 |
Capital |
2 |
20,000 |
2/6/1980 |
Purchases |
3 |
12,000 |
|
6/6/1980 |
Sales |
6 |
17,000 |
3/6/1980 |
Furniture |
4 |
2,000 |
|
15/6/1980 |
Sales |
6 |
21,000 |
5/6/1980 |
Transport |
5 |
250 |
|
18/6/1980 |
Sales |
6 |
3,000 |
8/6/1980 |
Purchases |
3 |
15,000 |
|
|
|
|
|
10/6/1980 |
Purchases |
3 |
5,000 |
|
|
|
|
|
12/6/1980 |
rent |
7 |
800 |
|
|
|
|
|
20/6/1980 |
carriages |
8 |
150 |
|
|
|
|
|
22/6/1980 |
wages |
9 |
350 |
|
|
|
|
|
30/6/1980 |
Balance c/d |
|
25,450 |
|
|
|
|
61,000 |
|
|
|
61,000 |
|
1/7/1980 |
Balance b/d |
|
25450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Debit (DR) CAPITAL ACCOUNT 2 Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
30/6/1980 |
Balance c/d |
|
20,000 |
1/6/1980 |
Cash |
|
20,000 |
|
|
|
|
|
1/7/1980 |
Balance b/d |
|
20,000 |
|
|
|
|
|
|
|
|
|
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Debit (DR) PURCHASES ACCOUNT 3 Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
2/6/1980 |
Cash |
|
12,000 |
30/6/1980 |
Balance c/d |
|
32,000 |
|
8/6/1980 |
Cash |
|
15,000 |
|
|
|
|
|
10/6/1980 |
Cash |
|
5,000 |
|
|
|
|
|
|
|
|
32,000 |
|
|
|
32,000 |
|
1/7/1980 |
Balance b/d |
|
32,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Debit (DR) FURNITURE ACCOUNT 4 Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
3/6/1980 |
Cash |
|
2,000 |
30/6/1980 |
Balance c/d |
|
2,000 |
|
1/7/1980
|
Balance b/d |
|
2,000 |
|
|
|
|
|
|
|
|
|
|
|
|
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Debit (DR) TRANSPORT ACCOUNT 5 Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
5/6/1980 |
Cash |
|
250 |
30/6/1980 |
Balance c/d |
|
250 |
|
1/7/1980
|
Balance b/d |
|
250 |
|
|
|
|
|
|
|
|
|
|
|
|
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Debit (DR) SALES ACCOUNT 6 Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
30/6/1980 |
Balance c/d |
|
41,000 |
6/6/1980 |
Cash |
|
17,000 |
|
|
|
|
|
15/6/1980 |
Cash |
|
21,000 |
|
|
|
|
|
18/6/1980 |
Cash |
|
3,000 |
|
|
|
|
41,000 |
|
|
|
41,000 |
|
|
|
|
|
1/7/1980 |
Balance b/d |
|
41,000 |
|
|
|
|
|
|
|
|
|
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Debit (DR) RENT ACCOUNT 7 Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
12/6/1980 |
Cash |
|
800 |
30/6/1980 |
Balance c/d |
|
800 |
|
1/7/1980 |
Balance b/d |
|
800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Debit (DR) CARRIAGE ACCOUNT 8 Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
20/6/1980 |
Cash |
|
150 |
30/6/1980 |
Balance c/d |
|
150 |
|
1/7/1980 |
Balance b/d |
|
150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Debit (DR) WAGES ACCOUNT 9 Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
20/6/1980 |
Cash |
|
350 |
30/6/1980 |
Balance c/d |
|
350 |
|
1/7/1980 |
Balance b/d |
|
350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
edu.uptymez.com
TRIAL BALANCE AS AT
|
S/N |
Name of account |
Debit (DR) |
Credit ( CR) |
|
1 |
Cash |
25,450 |
|
|
2 |
Capital |
|
20,000 |
|
3 |
Purchases |
32,000 |
|
|
4 |
Furniture |
2,000 |
|
|
5 |
Transport |
250 |
|
|
6 |
Sales |
|
41,000 |
|
7 |
Rent |
800 |
|
|
8 |
Carriage |
150 |
|
|
9 |
Wages |
350 |
|
|
|
|
61,000 |
61,000 |
|
|
|
|
|
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EXAMPLE.2
Kija started business on 1st July with capital in cash 60,000.00
July. 2. Bought goods for cash 35,000
3. Bought furniture 5,000
4. Bought scales for cash 2,000
5. Cash sales to date 45,000
7. Bought goods for cash 20,000
8. Paid transport charges 280
10. Paid electricity bill 850
15. Sold goods for cash 25,000
20. Paid rent 2,500
Required: Enter the above transactions in the ledgers, complete the double entry, balance the accounts at the end of the month and prepare a balance.
Solution
Debit (DR) CASH BOOK ACCOUNT 1 Credit (DR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
1st July |
Capital |
2 |
60,000 |
2nd July |
Purchases |
3 |
35,000 |
|
5th July |
Sales |
6 |
45,000 |
3rd July |
Furniture |
4 |
5,000 |
|
15th July |
Sales |
6 |
25,000 |
4th July |
Scales |
5 |
2,000 |
|
|
|
|
|
7th July |
Purchases |
3 |
20,000 |
|
|
|
|
|
8th July |
Transport |
7 |
280 |
|
|
|
|
|
10th July |
Electricity |
8 |
850 |
|
|
|
|
|
20th July |
Rent |
9 |
2500 |
|
|
|
|
|
31st July |
Balance c/d |
|
64,370 |
|
|
|
|
130,000 |
|
|
|
130,000 |
|
1st August |
Balance b/d |
|
64,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
edu.uptymez.com
Debit (DR) CAPITAL ACCOUNT (2) Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
31st July |
Balance c/d |
|
60,000 |
1st July |
Cash |
|
60,000 |
|
|
|
|
|
1st August |
Balance b/d |
|
60,000 |
|
|
|
|
|
|
|
|
|
edu.uptymez.com
Debit ( DR) PURCHASES ACCOUNT (3) Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
2nd July |
Cash |
|
12,000 |
31st July |
Balance c/d |
|
55,000 |
|
7th July |
Cash |
|
15,000 |
|
|
|
|
|
|
|
|
55,000 |
|
|
|
55,000 |
|
1st August |
Balance b/d |
|
55,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
edu.uptymez.com
Debit (DR) FURNITURE ACCOUNT (4) Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
3rd July |
Cash |
|
5,000 |
31st July |
Balance c/d |
|
5,000 |
|
1st August |
Balance b/d |
|
5,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Debit (DR) SCALES ACCOUNT (5) Credits (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
4th July |
Cash |
|
2,000 |
31st July |
Balance c/d |
|
2,000 |
|
1st August |
Balance b/d |
|
2,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
edu.uptymez.com
Debit (DR) SALES ACCOUNT (6) Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
31st July |
Balance c/d |
|
70,000 |
5th July |
Cash |
|
45,000 |
|
|
|
|
|
15th July |
Cash |
|
25,000 |
|
|
|
|
70,000 |
|
|
|
70,000 |
|
|
|
|
|
1st August |
Balance b/d |
|
70,000 |
|
|
|
|
|
|
|
|
|
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Debit (DR) TRANSPORT ACCOUNT (7) Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
8th July |
Cash |
|
280 |
31st July |
Balance c/d |
|
280 |
|
1st August |
Balance b/d |
|
280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Debit (DR) ELECTRICITY ACCOUNT (8) Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
10th July |
Cash |
|
850 |
31st July |
Balance c/d |
|
850 |
|
1st August |
Balance b/d |
|
850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
edu.uptymez.com
Debit (DR) RENT ACCOUNT (9) Credit (CR)
|
Date |
Particular |
Folio |
Amount |
Date |
Particular |
Folio |
Amount |
|
20th July |
Cash |
|
2,500 |
31st July |
Balance c/d |
|
2,500 |
|
1st August |
Balance b/d |
|
2,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
edu.uptymez.com
TRIAL BALANCE AS AT 31st JUNE
|
S/N |
Name of account |
Debit (DR) |
Credit (CR) |
|
1 |
Cash |
64,370 |
|
|
2 |
Capital |
|
60,000 |
|
3 |
Purchases |
55,000 |
|
|
4 |
Furniture |
5,000 |
|
|
5 |
Scales |
2,000 |
|
|
6 |
Sales |
|
70,000 |
|
7 |
Transport |
280 |
|
|
8 |
Electricity |
850 |
|
|
9 |
Rent |
2,500 |
|
|
|
|
130,000 |
130,000 |
|
|
|
|
|
|
|
|
|
|
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