Help with Trial Balance

olaf78

Hello guys... I know its maybe simple task... but I have huge problems to do that... If somebody can do this for me and explain?
The following are the transactions relating to J&S BUSINESS CONSULTING ltd, over an accounting period from 1st June 2016 to 30th June 2017.
 Started business with Capital £s. 100,000
 Paid into Bank £s. 10,000
 Bought Furniture and paid cash £s. 25,000
 Bought goods for cash £s. 50,000
 Bought goods from Ram on Credit £s. 15,000
 Sold a part of the goods for £s. 75,000 and paid the proceeds into bank directly
 Sold the remaining goods on credit for £s. 50,000 to Rahim
 Paid Salaries and Wages £s. 5,000
 Paid rent by cheque £s. 8,000

Draw up the Trial Balance of J&S Ltd as on 30th June 2017 for internal processing.

davealucas

I think you best bet will be to set up your T accounts first and then draw up the Trial Balance from all the balances carried down.

mskaat

Some assumptions had to be made here.

Answer-
Trial balance
Debit balances are:
Cash £25,000
Bank £62,000
PPE £25,000
Trade debtors £50,000
Purchases £65,000
Wages £5,000
Rent £8,000
Total £240,000

Credit balances are:
Share capital £100,000
Trade creditors £15,000
Sales £125,000
Total £240,000

Workings-
1. Dr Cash, Cr Share capital: £100,000
2. Dr Cash, Cr Sales: £10,000
3. Dr Fixed assets (PPE), Cr Cash: £25,000
4. Dr Purchases, Cr Cash: £50,000
5. Dr Purchases, Cr Trade creditors (Ram): £15,000
6. Dr Bank, Cr Sales: £75,000
7. Dr Trade debtors(Rahim), Cr Sales: £50,000
8. Dr Wages, Cr Bank: £5,000
9. Dr Rent, Cr Bank: £8,000

Hope that helps

olaf78

Thanks a lot for that... Now I will try to set up how its working everything in my mind... The problem is... I never did t-accounts for trial balance, always I get information and I just need put them in correct places.

LeapyUK

I learned about Trial Balance yesterday.

Use this:

Debit side:

(Paled)
Purchases
Assets
Losses
Expenses
Drawings
(SLCA)

Credit side:

(Clips)
Capital
Liabilities
Income
Profit
Sales
(PLCA)

Just think “Paled Clips” in your head and put figures in correct columns from this. I hope this helps.