PowerPoint Presentation

St. Xavier’s College of Management & Technology NAAC Accredited with B++ Grade ( 1st Cycle) Digha-Aashiyana Road, Digha Ghat, Patna-800011, Bihar.

TABLE OF CONTENT :. S.NO TOPIC SLIDE NO. 1 MEANING 4 2 FEATURES & OBJECTIVES 5 3 PREPARATION 6,7,8,9 4 QUESTION 10,11 5 PROOF OF ACCURACY 12.

MEANING & DEFINATION. A Trial Balance is a bookkeeping worksheet in which trial balance of all ledgers are compiled into debit and credit account column totals that are equal. A Trial Balance is the list of debit and credit balances, taken out from ledger it also include the balance of cash and bank taken from the cash book. - CARTER.

FEATURES & OBJECTIVES. 1.Includes balance of all ledgers and cash book. 2. It's a statement. 3. Prepared to test the arithmetic accuracy. 4. It is usually prepared at the end of the accounting year..

PREPARATION OF TRIAL BALANCE. A close-up of a receipt Description automatically generated.

RULES FOR PREPARATION OF TRiaL BALANCE :. While Preparation of Trial Balance we must take care of the following rules/points: The balances of the following accounts are always found on the debit column - Assets -Expense Accounts -Drawings Accounts -Cash Balance -Bank Balance -Any losses.

.. 2. And the following balances are placed on the credit side of the trial balance -Liabilities -Income Accounts -Capital Accounts -Profits 3. Closing stock is usually not shown in Trial Balance. It is shown below the trial balance as an additional information. It represent the unsold stock out of total opening stock and purchases. However it can appear in the trail balance by making adjustment in purchase by passing the following entry:.

METHODS OF PREPARING TRIAL BALANCE. It can be prepared in two ways : Balance Method - Under this method, all the ledger accounts including cash book are balanced and only the accounts having debit or credit balances are recorded in trial balance ignoring the accounts having no balance. Total Amount Method – Under this method, total of each side of account is recorded in trial balance..

A table with numbers and text Description automatically generated.

A white sheet of paper with black text Description automatically generated.

IS THE AGGREMENT OF TRAIL BALANCE A CONCLUSIVE PROOF OF ACCURACY?.

CONCLUSION. A Trial Balance is a sheet that summarises all of the ledgers and balances. As a result, it provides a bird's eye view of an organisation's accounting transactions. An organisation's profit or loss and financial situation at the end of the year must be known..

REFERENCE. www.wikipedia.com www.vedantu.com Books: DK Goel, NCERT.

A blue and white thank you card Description automatically generated.