Rules and Examples of Trial Balance | Tally Solutions

Example of Trial Balance ; Prepaid Insurance, 120, - ; Office furniture and equipment, 15,000, - ; Bank loan, -, 15,000 ; Accounts Payable, -, 5,000. /** *Themaintemplatefile * *ThisisthemostgenerictemplatefileinaWordPresstheme *andoneofthetworequiredfilesforatheme(theotherbeingstyle.css). *Itisusedtodisplayapagewhennothingmorespecificmatchesaquery. *E.g.,itputstogetherthehomepagewhennohome.phpfileexists. * *@linkhttps://developer.wordpress.org/themes/basics/template-hierarchy/ * *@packageWordPress *@subpackageTally *@since1.0.0 */ ?> RulesandExamplesofTrialBalance|TallySolutions HomeAccountingRulesAndExamplesOfTrialBalance RulesAndExamplesOfTrialBalance SHARE TallySolutions|Updatedon:December13,2021 RulestopreparetheTrialbalance StepstoprepareTrialbalance SpecimenofTrialbalance ExampleofTrialBalance Atrialbalanceisaconglomerateoforlistofdebitandcreditbalancesextractedfromvariousaccountsintheledgerincludingcashandbankbalancesfromcashbook.Theruletopreparetrialbalanceisthatthetotalofthedebitbalancesandcreditbalancesextractedfromtheledgermusttally.Becauseeverytransactionhasadualeffectwitheachdebithavingacorrespondingcreditandviceversa. Therefore,attheendoftheaccountingperiodorattheendofeachmonth,thebalancesoftheledgeraccountsareextracted,andtrialbalanceispreparedtotestastoifthetotaldebitsareequaltototalcreditsornot. RulestopreparetheTrialbalance TheruletopreparetheTrialbalanceisanequationwhichisasfollows: TotalDebitEntries=TotalCreditEntries Debit Credit AllAssets(Cashinhand,CashatBank,Inventory,LandandBuilding,PlantandMachineryetc.) SundryDebtors Expenses(CarriageInward,Freight,Rents,rebatesandrates,Salary,Commissionetc.) Purchases Losses(Depreciation,Returninwards,ProfitandlossA/c(Dr.),Baddebtsetc.) Allliabilities(BankOverdraft,Securedandunsecuredloans,billspayable,OutstandingPayablesorexpenses,Loanonmortgageetc.) SundryCreditors Reservefund,generalreserve,provisionfordepreciation,Accumulateddepreciationetc., Sales Gains(Discountreceived,ReturnOutwards,Baddebtsrecovered,ProfitandlossA/c(Cr)etc.) StepstoprepareTrialbalance ThefollowingarethestepstoprepareTrialBalance. Step1 Cast/Balancealltheledgeraccountsinthebooks. Step2 ListalltheDebitbalancesonthedebitsideandsumthemup. Step3 ListalltheCreditbalancesonthecreditsideandsumthemup. Ideally,theTrialBalanceshouldTallyatStep3. SpecimenofTrialbalance TrialBalanceofXXXLtdasat______ SINo Particulars L.F AmountRp DR AmountRp CR           ExampleofTrialBalance ____LtdTrialBalance31-Dec2018(inDirham) Accounts Debit Credit Cash 1,02,280 - AccountsReceivable 7,500 - OfficeExpenses 2,500 - PrepaidRent 600 - PrepaidInsurance 120 - Officefurnitureandequipment 15,000 - Bankloan - 15,000 AccountsPayable - 5,000 UnearnedRevenues - 7,500 Capital - 1,00,000 Drawings 3,000 - CommissionRevenue - 12,500 SalaryExpenses 9,000 - Total 1,40,000 1,40,000   ReadMoreonTrialBalance WhatisTrialBalance,HowtoPrepareTrialBalance,MethodstoPrepareTrialBalance,ErrorsinTrialBalance TallySolutions|Nov-21-2019 Filter Accounting BusinessGuides ERPSoftware GST Inventory Tally Technology LatestBlogs Microenterprise–Definition,LatestNews,AndWhyMicroenterpriseIsImportant? TallySolutions&nbspDec-15-2021 HowtoWriteaBusinessPlanThatOutlinesYourGoals,SecuresFunding,andBeyond TallySolutions&nbspDec-14-2021 TipsforChoosingtheBestBillingandInvoiceSoftware TallySolutions&nbspDec-14-2021 HowDoAccountingProfitVs.EconomicProfitDiffer? TallySolutions&nbspDec-14-2021 Budgetingvs.Forecasting:What’stheDifferenceBetweentheTwo? TallySolutions&nbspDec-14-2021 5CashFlowForecastingMistakesThatSmallBusinessesDo ManaliSubramanian&nbspNov-10-2021 Accountingsolutionstohelpyoumanageyourbusinessjustthewayyouwant. Takeafreetrialnow