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Nagasravan Tamma has Published 287 Articles
Nagasravan Tamma
117 Views
This method is not widely used because the accuracy of balances is not determined in this method. In the totals method, both credit total and debit total is tabulated in two separate columns and credit and debit sides of the ledger are totaled.FormatThe format for preparing the trial balance by ... Read More
Nagasravan Tamma
80 Views
Refer the data given below −Name of accountAmount (in rupees)Name of accountAmount (in rupees)Cash in hand18500Supplies2500Accounts receivable5500Revenue fee18000Accounts payable2000Note payable8500Revenue (unearned)1500Common stock9000Furniture and fitting5000Machinery7500SolutionGiven below is the trial balance by using balances method − ABC ltd 28/02/2001Sr.NoAccount titleLedger folioBalancedebitCredit1Cash 18500 2Supplies 2500 3Account receivables 5500 4Revenue (Fee) 180005Account Payable 20006Note payable 85007Unearned revenue 15008Common stock 90009Furniture and ... Read More
Nagasravan Tamma
104 Views
This is the most commonly used method for preparing a trial balance. In this method, closing balances are tabulated in two separate statements. All the credit balances are recorded in the credit column and all the debit balances are recorded in the debit column. Both balances are then tallied.FormatThe format ... Read More
Nagasravan Tamma
314 Views
The format of trial balance is as follows −Title DD/MM/YYYYAccount numberAccount titleLedger folioBalancedebitCredit Here, Title − Name of the company.DD/MM/YYYY − Trial balance prepared Date, Month and Year.Account number − Ledger account (serial numbers).Account title − Full account name of ledger account.Ledger folio − Page number of ledger balance of accounts.Debit − Debit balance.Credit − Credit ... Read More
Nagasravan Tamma
469 Views
Trial balance records and categorizes all the ledger balances into debit and credit in a particular period.ObjectivesThe objectives of trial balances are explained below −Arithmetical accuracyArithmetical accuracy of transactions is provided, if trial balance is balanced. If it is not balanced, there may be some error and need for rectification.Error ... Read More
Nagasravan Tamma
543 Views
Trial balance records and categorizes all the ledger balances into debit and credit in a particular period. A trial balance includes items like assets, revenues, liabilities, gains, expenses, losses and equity.Usually, trial balance is prepared at the end of the reporting period. Each business transaction is recorded in credit and ... Read More
Nagasravan Tamma
1K+ Views
Maintaining two or more accounts for every single business transaction is called a double entry system. Let us now learn about its advantages and disadvantages.AdvantagesThe advantages of double entry system are explained below −Records debit and credit simultaneously.In the double entry system, there will be a dual aspect of every ... Read More
Nagasravan Tamma
388 Views
Maintaining two or more accounts for every single business transaction is called a double entry system. Each financial transaction has an effect on, at least, two accounts which are equal and opposite.For example, suppose, if a debit transaction has happened in a business, then the same transaction has the opposite ... Read More
Nagasravan Tamma
2K+ Views
The interdependent nature of the world allows people to obtain goods and services from producers to consumers. Some of them include transactions and exchanges. Though both sound similar and interchangeable, they differ in various aspects.TransactionsIn this mode, provision of goods and services exchanged for money is done between firms. This ... Read More
Nagasravan Tamma
3K+ Views
During the course operations, every business will have several transactions, which have an impact on business finances and are recorded in books.Cash transactionsCash transactions are those transactions, which are settled at the time of occurrence of transaction. Sometimes, they are settled in cash at the time of occurrence or sometimes ... Read More