Key terms: Chapter 11

Question 1

Initial Trial Balance

Answer 1

List of the balances of every account from general ledger (including cash book & petty cash book),

Distinguishing between those accounts which have debit balances.

Question 2

Debit Balances

Answer 2

Include

• Assets
• Expenses
• Drawings purchases
• Sales returns

Question 3

Credit Balances

Answer 3

Include:

• Liabilities
• Income
• Capital
• Sales
• Purchases returns