3: Balancing Accounts and the Trial Balance

Question 1

Two reasons why businesses keep accounts

Answer 1

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

Question 2

Balance

Answer 2

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

Question 3

How to balance an account

Answer 3

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

Question 4

What happens when an account one has one entry

Answer 4

they do not need to be balanced

Question 5

Trial balance

Answer 5

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