lec4 trial balance

Question 1

when translating a t account what should you start w

Answer 1

always the name

Question 2

why start w name of t account

Answer 2

so you know the context of teh detail

Question 3

steps to baalnce an account

Answer 3

compute differece then enter on the side with the lowest balance and not as balance carried down balance c/d

draw parrallel line under the balance /cd on both sides then write total amount(sum should be the same )

carry over baalnce cd to the oppposite side then write balance b/d

make sure the final balance is taking the right side - check using the AE LIC

Question 4

Why can bank account take both a debit and credit closing balance

Answer 4

company may owe bank so credit - cl - as went into overdraft

or debit current asset - company owe bank/ has kept money in there

Question 5

are assets and liablities and capital carried forward

Answer 5

yes but not income

Question 6

does profit roll over and how

Answer 6

yes it goes to capitall in bs as retained profit

Question 7

why might we see a balance brought down in the first line of t account

Answer 7

shows got outstanding loan e.g.

loool may need to go over this

Question 8

when doing trial balance what are the steps

Answer 8

classify account

classify whether debit or credit

then add

debit should be equal to credit