3: Balancing Accounts and the Trial Balance Flashcards

1
Q

Two reasons why businesses keep accounts

A
  1. to see at a glance how much is in each account
  2. check the accuracy of the bookkeeping so far
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2
Q

Balance

A

net of the debit and credit totals, debit receipts less credit receipts

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3
Q

How to balance an account

A
  1. total column with larger side
  2. record this total on both sides
  3. record on credit side the difference between the two figures
  4. ‘carry down’ balancing figure, putting it on the other side of the sae account below the total
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4
Q

What happens when an account one has one entry

A

they do not need to be balanced

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5
Q

Trial balance

A

a totalled list of the balances on each side of the accounts

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