Page 131 - DMGT104_FINANCIAL_ACCOUNTING

Unit 7: Trial Balance

From the above trial balances it is clear that the total of debit side will agree with the total of Notes
credit side if Ledger accounts are arithmetically correct. If these totals do not tally with each
other, there will be some error in the ledger accounts.

Task From the following transactions, pass journal entries, prepare ledger accounts and
also prepare Trial Balance under:
( )
1. Anil started business with 8,000

2. Purchased furniture 1,000
3. Purchased goods 6,000
4. Sold goods 7,000
5. Purchased from Raja 4,000
6. Sold to Somu 5,000

7. Paid to Raja 2,500
8. Received from Somu 3,000
9. Paid rent 200
10. Received commission 100

Self Assessment

Fill in the blanks:
1. …………………… is a statement which shows balances of all accounts on a particular date.

2. The balances of all the liabilities and capital accounts are recorded in the ……………………
of the Trial Balance.
3. The balances of all incomes and gains are disclosed in the …………… of the Trial Balance.

4. ………………… is found when one account is debited or credited in the place of another
account.
5. …………………… occur when any business transaction is completely or partially omitted
from the recording in the books of original records.
6. …………………… occur when there is wrong classification between the capital and revenue
nature incomes or expenditures.
7. Suspense A/c is shown in the …………………….
8. The balances of all the assets accounts and drawing accounts are recorded in the
…………………… of the Trial Balance.
9. The balances of all incomes and gains are disclosed in the ……………… of the Trial Balance.

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