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 |
