Accountancy, asked by rohitkumar99222666, 5 months ago

13. Following is the Trial Balance of M/s Indramani Jaiswal as on
Credit Balances
Debit Balances
80.000
27,000
Capital
Returns Outward
Sales
Provision for Doubtful Debts
Creditors
Bills Payable
Bank Loan
110
2.46,700
6.200
18.150
2.000
10.00
Building
Machinery
Furniture
Goodwill
Productive Wages
Salaries
Freight Inwards
Freight Outwards
Manufacturing Expenses
Insurance
General Expenses
Debtors
Opening Stock
Purchases
Returns Inward
Commission
16,500
6,300
27.142
31,790
15,040
2,470
2.000
11.000
3,000
6,630
67.360
29.170
95,015
3.128
989
Bad Debts
1,300
460
Fank Charges
ank Balance
7,145
ash
721
3,54,160
Prepare Trading and Profit and Loss Account for the year ending 31st March, 2020
Balance Sheet as on that date after making the following adjustments:
(1) Value of Closing Stock 6,100.
(11) Depreciate machinery @ 10% p.a.
(in) Create Provision for Doubtful Debts at 5% on debtors.
(iv) Commission payable to manager at 10% on net profit.
(u) On 25th March, 2020, goods costing * 1,500 and furniture costing 3,000 were des
by fire, insurance company has accepted claims of * 1.000 for goods and + 2
furniture.
[Gross Profit- 82.827; Net Profit- 48,264; Balance Sheet Total - 1​

Answers

Answered by syed2020ashaels
4

Answer:

A trial balance is so called because it provides a test of a fundamental aspect of a set of books, but is not a complete audit of them.

Explanation:

What is a trial balance?

A ledger is a ledger in which the balances of all ledgers are compiled into column totals of debit and credit accounts that are equal. The Company prepares a balance sheet on a regular basis, usually at the end of each reporting period. The general purpose of creating a trial balance is to ensure that the entries in the company's accounting system are mathematically correct.

A balance sheet is often the first step in the audit process, as it allows auditors to ensure that there are no mathematical errors in the accounting system before moving on to more complex and detailed analyses.

KEY SHOTS

A trial balance is a worksheet with two columns, one for debits and one for credits, that ensures the company's accounting is mathematically correct.

Debits and credits include all business transactions for a company over a period, including the sum of such accounts as assets, expenses, liabilities, and revenues.

The debits and credits of the trial balance must match to ensure that there are no mathematical errors, but there may still be errors or mistakes in the accounting systems.

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Answered by manishakakkar16
0

Answer:

A trial balance is not a full audit of the books; rather, it serves as a test of a key component of a set of books.

Explanation:

A trial balance is what?

A ledger is a ledger that totals the balances of all other ledgers into equal column totals for debit and credit accounts. The Company regularly creates a balance sheet, often at the conclusion of each reporting quarter. A trial balance is generally used to check the mathematical accuracy of entries made in an organization's accounting system.

A balance sheet is frequently the first document reviewed during an audit because it enables auditors to check for mathematical problems.

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