Question

Which side of trial balance in investment​

Answer 1

Answer:

Investment is an asset to business. As assets, expenses, Drawings, provisions are shown in the debit side of trial balance so Investment is to be shown on debit side as well.

Interest on investment is our income so if there's any interest received on investment then that is to be shown on the credit side of trial balance.

Hope it helps :)

Answer 2

Answer:

Investment is an asset to business. As assets, expenses, Drawings, provisions are shown in the debit side of trial balance so Investment is to be shown on debit side as well.

Explanation:

Investment is an asset to business. As assets, expenses, Drawings, provisions are shown in the debit side of trial balance so Investment is to be shown on debit side as well.

A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal. A company prepares a trial balance periodically, usually at the end of every reporting period. The general purpose of producing a trial balance is to ensure that the entries in a company’s bookkeeping system are mathematically correct.

A trial balance is so called because it provides a test of a fundamental aspect of a set of books, but is not a full audit of them. A trial balance is often the first step in an audit procedure, because it allows auditors to make sure there are no mathematical errors in the bookkeeping system before moving on to more complex and detailed analyses.

Preparing a trial balance for a company serves to detect any mathematical errors that have occurred in the double entry accounting system. If the total debits equal the total credits, the trial balance is considered to be balanced, and there should be no mathematical errors in the ledgers. However, this does not mean that there are no errors in a company’s accounting system. For example, transactions classified improperly or those simply missing from the system still could be material accounting errors that would not be detected by the trial balance procedure.

Companies initially record their business transactions in bookkeeping accounts within the general ledger. Depending on the kinds of business transactions that have occurred, accounts in the ledgers could have been debited or credited during a given accounting period before they are used in a trial balance worksheet. Furthermore, some accounts may have been used to record multiple business transactions. As a result, the ending balance of each ledger account as shown in the trial balance worksheet is the sum of all debits and credits that have been entered to that account based on all related business transactions.

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