Question

prepare trading and profit and loss account and balance sheet from the following trial balance

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Answer 1

Explanation:

This is a simple question related to preparation of a balance sheet where all the expenses or profits are listed and then a summary is taken out. Addition is taken as positive and anything that reduces is negative

A trial balance is a list that shows all the of all the debit and credit transactions in an account for an entity for a given period – usually a month.  

Usually a trial balance is prepared having a format of two-column schedule with all the debit balances listed in one column and all the credit balances listed in the other.  

The trial balance is made once all the transactions for the period have been journalized and posted to the General Ledger and in the correct coulmn.