Trial Balance Examples

Example # 1:

Make Trial Balance from mixed transactions for Iram Shehzadi Ltd at year-end (June 30th, 2016):

 

 

Iram Shehzadi Ltd

Accounts

As on June 30th, 2016

Description AmountDescription AmountDescription Amount
Account Payable$ 200Owner Equity$ 300Land$ 200
Account Receivables   350Cost of Goods Sold    820Long-term Debts 1,300
Accrued Liabilities   150Dep. Expense    110Prepaid Expenses      40
Acc. Depreciation   250Interest Expense      80Salaries Expense     660
Building 1,400Unearned Revenue    130Sales Revenue    2,400
Cash    120Interest Revenue       50Rent Expense      400
Income Tax Expense    110Inventories     610Retained Earning      120

 

Solution: 

 

Iram Shehzadi Ltd

 Trial Balance

As on June 30th, 2016

S.NDescriptionRefAmount ($)
Dr.Cr.
1Account Payable200
 2Account Receivables350
 3Accrued Liabilities150
 4Acc. Depreciation250
 5Building1,400
 6Cash120
 7Income Tax Expense110
 8Owner Equity300
 9Cost of Goods Sold820
 10Dep. Expense110
 11Interest Expense80
 12Unearned Revenue130
 13Interest Revenue50
 14Inventories610
 15Land200
 16Long-term Debts1,300
 17Prepaid Expenses40
 18Salaries Expense660
 19Sales Revenue2,400
 20Rent Expense400
 21Retained Earning120

 Total

4,900

 4,900

 

 

Example # 2:

Correct following Trial Balance for Hareem Mehdi at end of December, 2017:

 

Hareem Mehdi

 Trial Balance

As on December 31, 2017

S.NoHeads of AccountsRefAmount ($)
DrCr
1Ahmed Owner’s Equity1,556
2Ahmed Drawing564
3Leasehold Premises750
4Sales2,750
5Due from Customer530
6Purchases1,259
7Purchases Return264
8Loan from Bank256
9Creditors528
10Trade Expenses700
11Cash226
12Bill Payable100
13Salaries and Wages600
14Stock Opening264
15Rent and Rates463
16Sales Return98

 

 Total 

$ 5,454

$ 5,454

 

 

Solution: 

 

Hareem Mehdi

 Trial Balance

As on December 31, 2017

 

S.NoHeads of AccountsRefAmount ($)
DrCr
1Ahmed Owner’s Equity1,556
2Ahmed Drawing564
3Leasehold Premises750
4Sales2,750
5Due from Customer530
6Purchases1,259
7Purchases Return264
8Loan from Bank256
9Creditors528
10Trade Expanses700
11Cash226
12Bill Payable100
13Salaries and Wages600
14Stock Opening264
15Rent and Rates463
16Sales Return98

Total

$ 5,454

$ 5,454

 

 

Example # 3:

Prepare Trial Balance as on 31.12.2016 from the following balances of Mr. Muhammad Nizakat Khan.

Capital   $ 340,000     Note Receivable $ 5,800      Creditor $ 13,000                Sales Returns $ 3,400

Drawings $ 4,000       Purchases Return $ 2,400     Salaries $ 38,200               Carriage inwards $ 1,400

Purchases $ 94,000     Printing & Stationery $ 5,000      Bills Payable $ 7,000    Stock $ 29,900

Debtors $ 16,000        Machinery $ 50,000       Sales $ 144,000        Wages $ 5,000

Insurance $ 2,200        Rent $ 1,600      Land $ 250,000    Interest received $ 1,700

Electricity $ 2,400               Commission received $ 800

 

Solution: 

 

Muhammad Nizakat Khan

Trial Balance

As on 31st  December, 2016

S. NoHeads of AccountsRefAmount ($)
DrCr
1Capital340,000
2Note Receivable5,800
3Creditor13,000
4Sales Returns3,400
5Drawings4,000
6Purchases Return2,400
7Salaries38,200
8Carriage inwards1,400
9Purchases94,000
10Printing & Stationery5,000
11Bills Payable7,000
12Stock29,900
13Debtors16,000
14Machinery50,000
15Sales144,000
16Wages5,000
17Insurance2,200
18Rent1,600
19Land250,000
20Interest received1,700
21Electricity2,400
22Commission received800
Total$ 508,900$ 508,900

 

>>> See definition and description about Trial Balance.

References

Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.

Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.

Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.

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