Why do you prepare a Trial Balance?
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Answer / chandu
trail balance is a statement, which is prepared based on ledger accounts closing balances.
trail is very important to know the arthemetical accuracy of business transactions.
| Is This Answer Correct ? | 36 Yes | 1 No |
Answer / teena sharma
Trial Balance is a list of balances extracted from the
ledger acounts at the end of an accounting period.
Since the balances in ledger accounts are effects of double
ntries, the total of debit balances should be equal to
total of credit balances.
| Is This Answer Correct ? | 19 Yes | 1 No |
Answer / sadhasri
As per double entry systems all the Debit entries has its
equalent credit entries.to know the correctness of the
books as per the above concept Trial Balance is
prepared.With the help of Triall Balance, P&L and Balance
Sheet is prepared.
| Is This Answer Correct ? | 11 Yes | 1 No |
Answer / vinay kumar
Trial Balance is prepared to know the arithmetical accuracy
of all ledgers.Where debit and credit should be equal.
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / jyothi.p
As name indicates,it is a trial on arithmetical accuracy of
ledger balances before preparing final accounts.Debit must
be equal to credit. on debit side of the trial balance all
assets & expenses and on credit side of T/B all liabilities
& incomes will consider.
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / prashanthi
to check the arithmetic accuracy of all the ledgers. only
if the debit balances total is equal to the credit balances
total we can prepare final accounts
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / u.uma bharathy
Trial balance means "we have to know the arthimetical
accuracy" of ledger. That's why we prepare the trial
balance ,its show the every debit balance is be tally with
the credit balance..
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / tapas ranjan das
Preparation of trial balance is the third phase in the
accounting process, after posting the accounts in the
ledger a statement is prepare to show separately the debit
or credit balance. Such a statement is known as Trial
Balance.
| Is This Answer Correct ? | 4 Yes | 2 No |
Answer / manoj kumar dash
trial balance is a picture of double entry,it eqallies all
debit items to credit items.
| Is This Answer Correct ? | 2 Yes | 0 No |
what is ratio analysis
The following transactions relating to ABC Ltd for the month of 20x1 a) Services performed in relation to income recieved in advance total $1500 b)Supplies expense includes $400 of supplies that are still on hand at 30 June c)Interest accrued on the bank loan is 750 d)At the end of june paid rent for 3 months (June, july Aug) $6000 e)Credit sales for the month of June 2009 amounted to $50000. Past expierence shows that around 1.5% of net credit sales are written off as bad debts. XYZ ltd, previously notified ABC ltd that they have gone bankrupt, will be able to pay $1000, which was recieved at the end of the month. The provision of doubtful debt has an opening balance of $800. f) The owners of ABC Ltd wish to revise the balance of the provision of doubtful debts account to $3500. g) Depreciation of one year on the delivary van is $1500. h) On 30 June 2009, ABC Ltd sold an item of equipment for $40000 cash. The cost of equipment was $50000 and had a accumulated depreciation balance of $2000 REQUIRED: Prepare the relevant adjusting journal entries for the month of June 20x2
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