Page 129 - DMGT104_FINANCIAL_ACCOUNTING

( )
( )
59,900
Cash Name of the Ledger Account Balance Dr. Balance Cr.
45,600
Bank 56,000 48,000
Furniture 12,000 –
Capital – 50,000
Purchases 35,000 –
Unit 7: Trial Balance
Sales 30,000
Vikas 12,000 15,000
Ranjeet 14,000 10,000
Notes
Freight 200 –
Salary 3,000
Rent 2,400
Drawings 4,000
Discount 100
1,98,600 1,98,600

(ii) Combined Method (both balance method and total method)
Trial Balance of Kalkaji Ltd. as on 31st January, 2011
Dr. Cr.
Name of the Ledger Account Total Amounts Balance Amounts
( ) ( ) ( ) ( )
Cash 59,900 45,600 14,300 –
Bank 56,000 48,000 8,000 –
Furniture 12,000 – 12,000 –
Capital – 50,000 – 50,000
Purchases 35,000 – 35,000 –
Sales 30,000 – 30,000
Vikas 12,000 15,000 – 3,000
Ranjeet 14,000 10,000 4,000 –
Freight 200 – 200 –
Salary 3,000 – 3,000 –
Rent 2,400 – 2,400 –
Drawings 4,000 – 4,000 –
Discount 100 – 100 –
1,98,600 1,98,600 83,000 83,000

Preparation of Trial Balance with the Help of Balances

In the examination problems the Ledger accounts are not given but a list of balances of accounts
is given. With the help of these balances the students are asked to prepare the Trial Balance.
Students should kept in mind the following rules to prepare a Trial Balance:
1. The balances of all the assets accounts and drawing accounts are recorded in the debit side
of the Trial Balance.
2. The balances of all the liabilities and capital accounts are recorded in the credit side of the
Trial Balance.

3. The balances of all expenses and losses of the business are showed in the debit side of the
Trial Balance.
4. The balances of all incomes and gains are disclosed in the credit side of the Trial Balance.
5. The balances of sales and sale returns are disclosed in the credit side and debit side of Trial
Balance respectively.
6. The balances of purchases and purchase returns are disclosed in the debit side and credit
side of the Trial Balance respectively.

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