Extended Trial Balance

Sherriemarie001

.Does any body have any tips on extended trial balance? I done my level 2 in classes and understood everything, I am doing Level 3 diploma in distant learning and I am struggling to get my head around extended trial balances, any suggestions? PLEASE HELP as I cant move on from this until I have this subject figured out. Many Thanks Sherrie

Clintm15

Hi Sherrie,

The extended trial balance works in very much the same way as the trial balance except that there are a few adjustments to make after which you can then separate out the entries that belong to the balance sheet and which belong to the income statement.

I can give a more detailed answer if you want to ask a more specific question.

Kind regards
Clint

cazalino

All i can suggest is that you keep doing them over and over and you will start to remember what goes where.

The Income Statement will show the Income and Expense figures and the Statement of Financial Position will show the Assets and Liabilities so as long as you know what category everything falls under then you can move them to the the correct column

Sherriemarie001

Thank you very much... as I am doing this from home i find it quite hard being a full time mam and working full time but getting there i think.... xz

Kelly7

Hiya

I started off by going down the bottom and adding on anything that needs to be like depreciation, accruals, pre-payments etc, then make your adjustments, then going down the list and putting I.S if it was income or expense and SFP if it was an asset or liability and transferring across.

xxxx

goldfinger

Hi Sherrie
I've been battling with the ETB myself, but really feel I've turned a corner now. I'm self-studying with the Osborne books. At the chapter-end exercises they give you a TB and some adjustments to add in to make an ETB. Problem was, although I had printed out a downloaded template, it took so long to fill out the tiny boxes and then add them all up that the inevitable errors were hard to spot and so messy to correct that the whole thing ended up a confusing jumble.
So I made a simple ETB spreadsheet in Excel, entered the info from the TB and, crucially, had the spreadsheet do all the column addition. So, for each exercise when I open the file, all the info from the TB is there, and all I have to do is enter the adjustments correctly. This has helped immeasurably - it's tidy, no maths errors, no writer's cramp! When I've finished the exercise I delete the adjustments, saving the starting info for next time.
Don't give up!
Goldfinger

CeeJaySix

May or may not work for you, but the easiest way I find to think about it is simply that the first column is the information your 'client' supplies you with, the adjustments column consists of your journals for stock movement, accruals & prepayments, depreciation etc, and the final column is then the financial statements for the 'clients' accounts. A lot of the techniques in all units seem far easier to understand if you take them out of the textbook setting and try to apply them to the real world.