Question

2. Prepare Trial balance from the following:
Rs. Rs.
Capital 9000 Rent outstanding 1000
Plant 12000 Opening Stock 2000
Purchases 8000 Sales Returns 4000
Sales 12000 Investments 14000
Creditors 8000 Debtors 2000
Bank loan 22000​

Answer 1

Trial balance of the above question.

• Usually trial balnce of the of the companies consist of items like capital, sales, purchase, returns, assets, expenses, income and many more which will be later classified into Debit and Credit Balance.
• Using these trial balance financial statements are prepared.
• Financial statements are divided into :-

1) Trading accounts.

2) Profit and loss accounts.

3) Balance sheet.