Book-keeping

The Trial Balance

Chapter 7

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 2007 7-1

 Learning Objective 1

Understand why the trial balance totals

should equal one another

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7-2

 Learning the trial balance totals
should equal one another

Total debit entries = Total credit entries

• For each debit entry there is a credit entry.

• For each credit entry there is a debit entry.

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7-3

 Trial Balance
A worked example

Exercise
Exercise 7.3X:
7.3X:

-- Record
Record transactions
transactions in
in the
the books
books of
of C
C Hilton;
Hilton;

-- Balance
Balance off
off the
the accounts;
accounts;

-- Extract
Extract aa trial
trial balance
balance as
as at
at 30
30 June
June 2006.
2006.

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7-4

 Trial Balance
A worked example 7.3

June
June11CCHilton
Hiltonstarted
startedin
inbusiness
businesswith
with₤9,000
₤9,000in
incash
cash

Homework for students before Lecture book-keeping on

Wednesday 3 December:
Make double entry on accounts of worked example 7.3

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7-5

 Trial Balance
A worked example 7.3

June
June22Paid
Paid₤8,000
₤8,000of
ofthe
thecash
cashinto
intoaabank
bankaccount
account

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7-6

 Trial Balance: a worked example 7.3

June
June44Paid
Paidrent
rentfor
forshop
shop₤300
₤300by
bycheque
cheque

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7-7

 Trial Balance: a worked example 7.3

June
June66Bought
Boughtgoods
goodsononcredit
creditfrom
fromMoorlands
Moorlands&&Co.
Co.₤675;
₤675;
JJSwain
Swain₤312;
₤312;BBMerton
Merton₤225
₤225

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7-8

 Trial Balance: a worked example 7.3

June
June12
12Sold
Soldgoods
goodsfor
forcash,
cash,₤450
₤450

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7-9

 Trial Balance: a worked example 7.3

June
June13
13Bought
Boughtfixtures,
fixtures,paying
payingby
bycheque,
cheque,₤230
₤230

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 10

 Trial Balance: a worked example 7.3

June
June15
15Sold
Soldgoods
goodson
oncredit
creditTTGreen
Green₤180;
₤180;KKWood
Wood₤367;
₤367;
PPBrown
Brown₤256
₤256

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 11

 Trial Balance: a worked example 7.3

June
June18
18Sold
Soldgoods
goodsfor
forcash,
cash,₤220
₤220

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 12

 Trial Balance: a worked example 7.3

June
June20
20Paid
PaidMoorlands
Moorlands&&Co
Coby
bycheque
cheque₤675
₤675and
and
BBMerton
Merton₤225
₤225

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 13

 Trial Balance: a worked example 7.3

June
June21
21Returned
Returnedgoods
goodsto toJJSwain
Swain₤112
₤112and
andpaid
paidthe
theoutstanding
outstanding
balance
balanceon
ontheir
theiraccount
accountbybycheque
cheque

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 14

 Trial Balance: a worked example 7.3

June
June24
24Bought
Boughtgoods
goodson
oncredit
creditfrom
fromMoorlands
Moorlands&&Co
Co₤220
₤220and
and
JJSwain
Swain₤92
₤92

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 15

 Trial Balance: a worked example 7.3

June
June26
26Paid
Paidwages
wagesin
incash,
cash,₤366
₤366

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 16

 Trial Balance: a worked example 7.3

June
June27
27Cash
Cashdrawings,
drawings,₤200
₤200

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 17

 Trial Balance: a worked example 7.3

June
June29
29Bought
Boughtmotor
motorvan,
van,paying
payingby
bycheque,
cheque,₤4,000
₤4,000

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 18

 Trial Balance: a worked example 7.3

June
June30
30Sold
Soldgoods
goodson
oncredit
creditto
toTTGreen
Green₤300;
₤300;KKWood
Wood₤50;
₤50;
PPBrown
Brown₤60
₤60

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 19

 Trial Balance: a worked example 7.3

June
June30
30Received
Receivedcheques
chequesfrom
fromthe
thefollowing:
following:TTGreen
Green₤180;
₤180;
KKWood
Wood₤367
₤367

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 20

 A worked example 7.3:
balancing off Cash account

Debit
June 1 Capit
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 21
 A worked example 7.3:
balancing off Bank account

Debit Bank Credit

June 2 Cash £8,000 June 4 Rent £300
June 30 T Green £180 June 13 Fixtures £230
June 30 K Wood £367 June 20 Moorlands & Co £675
June 20 B Merton £225
June 21 J Swain £200
June 29 Motor van £4,000
June 30 Balance c/d £2,917
£8,547 £8,547

July 1 Balance b/d £2,917

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 22

 Learning Objective 2

Draw up a trial balance from a given set of

accounts

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 23

 A worked example 7.3:
learning draw up a trial balance

Trial bal

Cash
Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 7 - 24
 End of Chapter 7:
The Trial Balance

Wood/Robinson: Book-keeping and Accounts, 6e, © T. Sijtsma 2007 7 - 25