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## Balance Sheet \$type=three\$count=6\$author=hide\$comment=hide\$label=hide\$date=hide\$show=home\$s=0

Definition of Trial balance

Trial balance is the statement which shows the list of balance of all ledger accounts .It is made for checking mathematical error , making of final accounts and maintaining budget of company. Because of it is made on basis of company’s all ledger accounts , so we satisfy about mathematical correctness , if debit balance of this statement is equal to credit balance of this statement .

Steps for making trial balance

1st Step : Making all ledger accounts and the calculate their balance , if any account’s debit side is more than credit balance , its balance will be called debit balance , if the credit balance is more than debit side balance , it is called credit balance .

2nd Step : Make statement in vertical form in which you have show particular for making the list of account and right side , you have to debit balance and credit balance .
Performa of Trial balance

______________________________________________
S. No. ↓ Particular ↓ Debit Balance ↓ Credit balance ↓
_______________________________________________

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3rd Step : Debit balance

1. assets account’s balance
2. expenses account balance
3. loss account ‘s balance
4. investment account balance
5. drawing account’s balance

6. Purchase account
7. Sale return Account

4th Step : Credit balance

1. Liabilities account’s balance
2. Provision account’s balance
3. Capital account’s balance
4. Reserve and surplus account’s balance

5. Sale account
6. Purchase return account

5th Step : If trial balance is not matched, the difference will be show as suspense account

Important notes

Closing Stock is not shown in trial balance because , it is adjusting item and we can give dual effect on final account . All other items whose account is not made in proper ledger will not shown in trial balance .

: 2
1. From the following balances prepare trial balance as on 31-03-2013
Capital 1,68,000
Openning stock 2,10,000
Sales returns 30,000
Purchase returns 20,000
Drawing 50,000
Purchase 3,60,000
Sales 7,20,000
Discount allowed 7,000
Wages 75,000
Debtors 45,000
Creditors 67,000
Salaries 12,000
Cash in hand 2,61,000
Bank over draft 75,000

2. Debit Amount

Drawings 50000
Opening stock 210000
Sales return 30000
Purchase 360000
Discount allowed 7000
Wages 75000
Debtors 45000
Salaries 12000
Cash in Hand 261000

1050000

Credit Amount

Capital 168000
Purchase returns 20000
Sales 720000
Creditors 67000
Bank Over draft 75000

1050000

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