CH12 - The Extended Trial Balance

Question 1

Extended Trial Balance

Answer 1

A worksheet, used to keep track of adjustments between the trial balance and the final accounts.

Question 2

Extended Trial Balances

Answer 2

Gives a vertical list of all the ledger account balances (the trial balance) with further columns for adjustment, accruals and prepayments and then 2 pairs of further columns which show whether figures go to the SOPL or SOFP.

Question 3

Into which columns should he extend the entries for closing inventory?

Answer 3

SOPL Credit
SOFP Debit

Dr Closing inventory (SOFP)
Cr COS (SOPL)

Question 4

In which columns of the extended trial balance should Naomi make entries for the profit?

Answer 4

SOPL Debit
SOFP Credit

Question 5

Purpose of extended trial balance.

Answer 5

To provide a record of adjustments made to the trial balance when calculating the figures for inclusion in the final accounts.

Question 6

When the trial balance is extended, in which column should the value of opening inventory be entered?

Answer 6

SOPL Debit

Question 7

Profit/loss entry in SOPL & SOFP.

Answer 7

SOPL - Dr < Cr = Profit
SOFP - Dr > Cr = Profit

Question 8

An extended trial balances is used to adjust trial balances figures for:

Answer 8

Errors
Accruals & Prepayments
Depreciation
Irrecoverable debts written off
Adjustments to the receivables allowances.
Closing inventory figures