Home For AAT student members AQ 2016 Advanced Diploma in Accounting Advanced Bookkeeping

extended trial balance

rafapakrafapak Registered Posts: 26

Hi guys

I would like to ask you for help. I have exercise where I should create extended trial balance. Please find enclosed screenshot below. I have some doubts in relation to whether a given item is the item of balance sheet or profit and loss. Please help me to clarify the following issues.

1. Is Credit card entry reduction to cash account therefore it should be credited to Balance Sheet ?

2. When they have inventory in trial balance, is this opening inventory in present period that was closing inventroy in last period and therefore should be debited to profit and loss because it will be sold in present period ?

3. Is interest received some kind of income so that it should be credited to profit and loss ?

4. Books and journals - i have problem with this entry. Is this regular cost so that it should be debited to profit and loss ? Do they mean books and journals bought for business activities ?

This is all I don't understand from trial balance enclosed. Please , help me in this matter. Regards. Rafal

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