3: Balancing Accounts and the Trial Balance Flashcards
1
Q
Two reasons why businesses keep accounts
A
- to see at a glance how much is in each account
- check the accuracy of the bookkeeping so far
2
Q
Balance
A
net of the debit and credit totals, debit receipts less credit receipts
3
Q
How to balance an account
A
- total column with larger side
- record this total on both sides
- record on credit side the difference between the two figures
- ‘carry down’ balancing figure, putting it on the other side of the sae account below the total
4
Q
What happens when an account one has one entry
A
they do not need to be balanced
5
Q
Trial balance
A
a totalled list of the balances on each side of the accounts