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 Payable  200
 2Account Receivables 350 
 3Accrued Liabilities  150
 4Acc. Depreciation  250
 5Building 1,400 
 6Cash 120 
 7Income Tax Expense 110 
 8Owner Equity  300
 9Cost of Goods Sold 820 
 10Dep. Expense 110 
 11Interest Expense 80 
 12Unearned Revenue  130
 13Interest Revenue  50
 14Inventories 610 
 15Land 200 
 16Long-term Debts  1,300
 17Prepaid Expenses 40 
 18Salaries Expense 660 
 19Sales Revenue  2,400
 20Rent Expense 400 
 21Retained Earning  120

 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 Equity  1,556
2Ahmed Drawing 564 
3Leasehold Premises 750 
4Sales  2,750
5Due from Customer  530
6Purchases 1,259 
7Purchases Return 264 
8Loan from Bank  256
9Creditors 528 
10Trade Expenses 700 
11Cash 226 
12Bill Payable 100 
13Salaries and Wages 600 
14Stock Opening  264
15Rent and Rates 463 
16Sales Return  98

 

 Total 

$ 5,454

$ 5,454

 

 

Solution: 

 

Hareem Mehdi

 Trial Balance

As on December 31, 2017

 

S.NoHeads of AccountsRefAmount ($)
DrCr
1Ahmed Owner’s Equity  1,556
2Ahmed Drawing 564 
3Leasehold Premises 750 
4Sales  2,750
5Due from Customer 530 
6Purchases 1,259 
7Purchases Return  264
8Loan from Bank  256
9Creditors  528
10Trade Expanses 700 
11Cash 226 
12Bill Payable  100
13Salaries and Wages 600 
14Stock Opening 264 
15Rent and Rates 463 
16Sales Return 98 
     

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
1Capital  340,000
2Note Receivable 5,800 
3Creditor  13,000
4Sales Returns 3,400 
5Drawings 4,000 
6Purchases Return  2,400
7Salaries 38,200 
8Carriage inwards 1,400 
9Purchases 94,000 
10Printing & Stationery 5,000 
11Bills Payable  7,000
12Stock 29,900 
13Debtors 16,000 
14Machinery 50,000 
15Sales  144,000
16Wages 5,000 
17Insurance 2,200 
18Rent 1,600 
19Land 250,000 
20Interest received  1,700
21Electricity 2,400 
22Commission received  800
     
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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