Introduction of Trail Balance
Importance
Advantage
- Checks Accuracy
- Helps Internal Audit
- Helps to find out errors of double posting
- Helps to prepare Balance sheet or Final Account
- Helps to identify and rectify arithmetical errors made at the time of posting and recording
Disadvantage
Points to be considered while preparing Trail balance
Format of Trail Balance
Here is the Format of Trail Balance| Trail Balance of ............... As on ............. |
|||
| Particular | L F No. | Debit | Credit |
| Opening Stock | ---- | ||
| Purchase | ---- | ||
| Sales Return | ---- | ||
| Salary, Wages, Allowance | ---- | ||
| Cash Balance,Bank Balance | ---- | ||
| Administrative, Interest, Travelling, Commission, Office, General Expenses, Sample expenses | ---- | ||
| Electricity, Water, Telephone, Postal, Legal, Bank Charges, Brokerage | ---- | ||
| Advertisement, Rent & Rates | ---- | ||
| Octrio, Import duty, Custom duty, Sales tax, Excise duty, Tax | ---- | ||
| Bills receivable,Account receivable, Prepaid Expenses | ---- | ||
| Bad debt/doubtful debt | ---- | ||
| Investment Machinery & equipment,Motor vehicle, Land and building, Furniture | ---- | ||
| Drawing | ---- | ||
| Carriage inward and outward, stationery, Fuel | ---- | ||
| Insurance premium | ---- | ||
| Depreciation, Preliminary expenses | ---- | ||
| Discount, Debtors | ---- | ||
| Audit fees | ---- | ||
| Charity & Donation | |||
| Losses | ---- | ||
| Royalty, Power | ---- | ||
| Patent right, Copy right, Goodwill | ---- | ||
| Capital, Loan, Bank loan,Reserves | --- | ||
| Sales, Creditor, Bills payable,Account payable | --- | ||
| Commission, Interest, Discount, Dividend, Rent received | --- | ||
| Advance income | --- | ||
| Income from investment | --- | ||
| Bank overdraft | ---- | ||
| various funds | ---- | ||
| Purchase Return | ---- | ||
| Outstanding Expenses | ---- |
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