Unit 12 - Trial Balance


Notes and activities on Trial Balance


Answer Activities and Questions


A trial balance is prepared to check the arithmetical accuracy of the double entries made in the ledger. When all transactions have been recorded the total debit balances must be equal to the total credit balances.

Accounts having debit balances

1. Purchases

2. Expenses - Example :- Wages / Salaries / Rent / Rates

3. Non current assets - Examples :- Equipment / Motor vehicles

4. Current assets - Examples :- Inventory of goods / Trade receivables / Cash and Bank

5. Drawings


Accounts having credit balances

1. Revenue

2. Income - Examples :- Discount received / rent received

3. Non current liabilities - Example :- Loan from bank

4. Current liabilities - Example :- Trade payables


Q1. Prepare a Trial Balance as at 31st December 2016 from the following information


$

Revenue

85 000

Inventory-1st Jan 2016

3 750

Purchases

35 800

Wages and salaries

3 500

Rent and rates

1 500

Machinery

40 000

Equipment

30 000

Fixtures and Fittings

15 000

Trade Receivables

18 000

Cash and Bank

12 000

Trade payables

14 000

Loan from bank

11 000

Capital

142 550

Drawings

8 000


Q2. Prepare a Trial Balance as at 31st December 2015 from the following information


$

Revenue

43 200

Inventory-1st Jan 2015

5 700

Purchases

49 900

Wages and salaries

4 400

Rent and rates

1 800

Advertising

2 600

Office Equipment

41 000

Fixtures and fittings

8 400

Trade Receivables

14 000

Cash and Bank

11 000

Trade payables

12 000

10% Loan from Bank (2030)

15 000

Capital

75 600

Drawings

7 000