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Showing posts from August 23, 2013

lecture 7

TRIAL BALANCE  TRIAL BALANCE IS A STATEMENT IN WHICH ALL THE BALANCES OF DIFFERENT ACCOUNTS ARE SHOWN . SOME OF THE BALANCES COULD BE OF DEBIT SIDE WHEREAS OTHER'S MIGHT BE OF CREDIT SIDE . SINCE OUR ACCOUNTING IS BASED ON DOUBLE ENTRY SYSTEM . THEREFORE THE TOTAL OF DEBIT BALANCES MUST BE EQUAL TO THE TOTAL OF CREDIT BALANCES.  (ASSETS/EXPENSES/LOSSES              ARE WRITTEN ON DEBIT SIDE) (LIABILITIES/PROFITS/INCOMES      ARE WRITTEN ON CREDIT SIDE)

BANK LOAN (LIABILITY)INVESTMENT (ASSETS)INTEREST ON  BANK LOAN (EXPENSE)DEBTORS (ASSETS)CREDITORS (LIABILITY)INTEREST ON INVESTMENT (INCOME)B/R (ASSETS)B/P(LIABILITY)BUILDING(ASSET)PLANT AND MACHINERY (ASSETS)CASH (ASSETS)BANK OVERDRAFT (LIABILITY)INTEREST ON BANK OVERDRAFT (EXPENSE)PURCHASES (EXPENSE)IPURCHASE RETURN(GAINS)SALES (INCOME)SALES RETURN (EXPENSE)CARRIAGE (EXPENSE)FREIGHT (EXPENSE)WAGES (EXPENSE)SALARY (EXPENSE)ADVERTISEMENT (EXPENSE)TRADE EXPENSE/ OFFICE EXPENSE (EXPENSE)PRINTING AND STATIONERY (EXPENSE)RENT (EXPENSE)CO…