Accounts Preperation - Extended Trial Balance


I'm Just Preparing for my Accounts Prep Exam. On the Extended trial Balance i don't understand how you work out whether a ledger balance should be a on the Statement of Financial Position Side or the Statement of Profit & Loss Side?
Anyone have any tips how to work this out?

Thankyou :)


  • Kkadijat
    Kkadijat Registered Posts: 28
    Think about it this way,
    SPL records the profit/ INCOME ie what the bussiness gained.
    SALES, Discount received, purchases returns, interest received,and CLOSING INV' ( Cr)

    And loss ie EXPENSES- genral exp', sales exp' telephone, wages, purchases, discount allowed, ,sales returns, building repairs, rent & rates, insurance, heating & lighting, interest paid, Admin expenses, deprciation charges,and of course opening inventory (Dr)

    SFP records the account balances that allow the business to know what they OWE/LIABILITY ie PLC ,bank - if overdrawn, capital, VAT, Equipment accum depr', loan, Allowance for doubtful debt (Cr)
    And OWN/ASSET ie SLC, Bank, equip @ cost, drawings, prepayments, ;land & building @ cost, shop fittings @cost, and closing inventory (Dr).

    I would sugest you draw up a ETB and fill all the above in and put a dash in the appropriate place. And try to do lots of practice with it until you master it.

    Hope this help and good luck
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