2nd Edition by Edwin Olima FCCA
that we have accounted for every transaction that has occurred
during the period, we should prepare a list of values and balances
representing all the flows
into the business and flows
out of the business. This list is called a trial
Use your (corrected) answers in the previous chapters to prepare
your list of values and balances according to the following format.
The first two entries have been done for you. Use the tips provided below.
COMPANY LIMITED – TRIAL BALANCE AS AT
on producing the trial balance:
· Using the sales invoice list, enter sales at their values net of VAT . Have the goods sold flowed out of the business?
· Using the purchases invoice list, enter purchases at their values net of VAT . Did the goods /services purchased flow into the business? Enter each different sundry item in its separate row.
List balances of
their gross values as at
· Using the bank analysis sheets, extract the receipts (excluding receipts for sales invoices ) and payments (excluding the payments for purchases invoices ) and put them in your trial balance . List each sundry item in its separate row.
List only the final
balance on the bank account and the VAT
· Also list your wages and salaries as indicated in that chapter – expense and liability.
· The interest received reflects income from the service of lending (depositing) money to the bank. The debit side of this transaction is already included in the bank balance.
· Do not forget to enter the value of the share capital that you put into the business which is now owed to you by The Company Limited.
· DO NOT list closing stock separately yet as it is already included in purchases for the year.
Total up the two columns and the totals should equal each other (i.e. they should balance) as proof that you have accounted correctly for all transactions! Try again if they do not.
your answer to the one at the back of the book.