4. double entry // 5. trial balance

Question 1

purposes of a trial balance? (2)

Answer 1

to check for arithmetic accuracy of the double entry recording system
to help to prepare the statement of financial performance and statement of financial position

Question 2

what is the format of a ledger account?

Answer 2

cash at bank account

date particulars dr cr bal
202X $ $ $

Nov 1 balance b/d 15000dr
5 inventory 800 14200dr
12 sales revenue 2500 16700dr
19 drawings 1500 15200dr

Dec 1 balance b/d 15200dr

Question 3

what is the format of a trial balance

Answer 3

corrine cafe				
trial balance as at 30 april 2020					
particulars			debit ($)	credit ($)	
capital				                75920	
drawings			        4070		
motor vehicles		120000		
inventory			3400		
salaries expenses		12000		
commission income			  4300	
sales revenue				  103000	
sales returns			3000		
cost of sales			88800		
utilities expenses		8700		
			                239970	  183220

Question 4

define trial balance

Answer 4

trial balance is a list of debit credit balance on a particular date

Question 5

what is the format of financial POSITION

Answer 5

ryan rolling
statement of financial position as at 30 april 2020
assets $ $ $
non current assets

current assets

total assets x

equity and liabilities
owners equity

non current liabilities

current liabilities

total equity and liabilities x

Question 6

what is the format of financial PERFORMANCE

Answer 6

ryan rolling			
statement of financial performance for the year ended 30 april 2020				
		                	 $	        $
sales reveue			 x	
less: sales returns	         x	
net sales revenue				x
less: cost of sales				x
gross profit				        x

other income
abc x
abc x x

less: other expenses				
abc			                x	
abc			                x	
abc			                x	         x
profit for the period			 x