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

 

Solution: 

 

Iram Shehzadi Ltd

 Trial Balance

As on June 30th, 2016

S.N Description Ref Amount ($)
Dr. Cr.
1 Account Payable     200
 2 Account Receivables   350  
 3 Accrued Liabilities     150
 4 Acc. Depreciation     250
 5 Building   1,400  
 6 Cash   120  
 7 Income Tax Expense   110  
 8 Owner Equity     300
 9 Cost of Goods Sold   820  
 10 Dep. Expense   110  
 11 Interest Expense   80  
 12 Unearned Revenue     130
 13 Interest Revenue     50
 14 Inventories   610  
 15 Land   200  
 16 Long-term Debts     1,300
 17 Prepaid Expenses   40  
 18 Salaries Expense   660  
 19 Sales Revenue     2,400
 20 Rent Expense   400  
 21 Retained 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.No Heads of Accounts Ref Amount ($)
Dr Cr
1 Ahmed Owner’s Equity     1,556
2 Ahmed Drawing   564  
3 Leasehold Premises   750  
4 Sales     2,750
5 Due from Customer     530
6 Purchases   1,259  
7 Purchases Return   264  
8 Loan from Bank     256
9 Creditors   528  
10 Trade Expenses   700  
11 Cash   226  
12 Bill Payable   100  
13 Salaries and Wages   600  
14 Stock Opening     264
15 Rent and Rates   463  
16 Sales Return     98

 

 Total 

$ 5,454

$ 5,454

 

Solution: 

 

Hareem Mehdi

 Trial Balance

As on December 31, 2017

 

S.No Heads of Accounts Ref Amount ($)
Dr Cr
1 Ahmed Owner’s Equity     1,556
2 Ahmed Drawing   564  
3 Leasehold Premises   750  
4 Sales     2,750
5 Due from Customer   530  
6 Purchases   1,259  
7 Purchases Return     264
8 Loan from Bank     256
9 Creditors     528
10 Trade Expanses   700  
11 Cash   226  
12 Bill Payable     100
13 Salaries and Wages   600  
14 Stock Opening   264  
15 Rent and Rates   463  
16 Sales 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. No Heads of Accounts Ref Amount ($)
Dr Cr
1 Capital     340,000
2 Note Receivable   5,800  
3 Creditor     13,000
4 Sales Returns   3,400  
5 Drawings   4,000  
6 Purchases Return     2,400
7 Salaries   38,200  
8 Carriage inwards   1,400  
9 Purchases   94,000  
10 Printing & Stationery   5,000  
11 Bills Payable     7,000
12 Stock   29,900  
13 Debtors   16,000  
14 Machinery   50,000  
15 Sales     144,000
16 Wages   5,000  
17 Insurance   2,200  
18 Rent   1,600  
19 Land   250,000  
20 Interest received     1,700
21 Electricity   2,400  
22 Commission 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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