Fill in the blanks-
1. The balance of cash column of cash book
is always
2. Expenses account can't have balance
3. Bank reconciliation statement is prepared
by
4. The
Account are prepared by
the trial balance
5 A
account is created when the
total of a tral balance do not agree
Answers
Answer:
Cash column of cash book will always show debit balance because cash payment can never exceed the cash in hand.
Expenses accounts are equity accounts with a debit balance. Expense accounts are considered contra equity accounts because their balance decreases the overall equity balance. In other words, debiting an expense account increases the balance instead of decreasing it like most other equity accounts.
The accountant typically prepares the bank reconciliation statement using all transactions through the previous day, as transactions may still be occurring on the actual statement date. All deposits and withdrawals posted to an account must be used to prepare a reconciliation statement
A trial balance is a sheet recording all the ledger balances categorized into debit and credit. A typical trial balance will have name of ledger and the balances. This is prepared as at a particular date which can be financial year end or calendar year.