Posting & trial bal
- 1. DATE PARTICULARS PR DEBIT CREDIT Jan 1 Cash 101 250000 Martinez, Capital 301 250000 GENERAL LEDGER CASH 101 Date Particulars PR Debit Date Particulars PR Credit GENERAL LEDGER MARTINEZ, CAPITAL 301 Date Particulars PR Debit Date Particulars PR Credit
- 2. GENERAL JOURNAL PAGE 1 DATE PARTICULARS PR DEBIT CREDIT Jan 1 Cash 101 250000 Martinez, Capital 301 250000 GENERAL LEDGER CASH 101 Date Particulars PR Debit Date Particulars PR Credit Jan 1 GJ1 250000 GENERAL LEDGER MARTINEZ, CAPITAL 301 Date Particulars PR Debit Date Particulars PR Credit
- 3. DATE PARTICULARS PR DEBIT CREDIT Jan 1 Cash 101 250000 Martinez, Capital 301 250000 GENERAL LEDGER CASH 101 Date Particulars PR Debit Date Particulars PR Credit Jan 1 GJ1 250000 GENERAL LEDGER MARTINEZ, CAPITAL 301 Date Particulars PR Debit Date Particulars PR Credit Jan 1 GJ1 250000
- 4. GENERAL JOURNAL PAGE 1 DATE PARTICULARS PR DEBIT CREDIT Jan 1 Cash 101 250000 Martinez, Capital 301 250000 GENERAL LEDGER CASH 101 Date Particulars PR Debit Date Particulars PR Credit Jan 1 GJ1 250000 GENERAL LEDGER MARTINEZ, CAPITAL 301 Date Particulars PR Debit Date Particulars PR Credit Jan 1 GJ1 250000
- 5. GENERAL JOURNAL PAGE 1 DATE PARTICULARS PR DEBIT CREDIT Jan 1 Cash 101 250000 Martinez, Capital 301 250000 GENERAL LEDGER CASH 101 Date Particulars PR Debit Date Particulars PR Credit Jan 1 GJ1 250000 GENERAL LEDGER MARTINEZ, CAPITAL 301 Date Particulars PR Debit Date Particulars PR Credit Jan 1 GJ1 250000
- 6. Assuming that after the occurrence of several transactions, the ledger accounts appeared as follows...
- 7. CASH 101 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 12,000 Jan 13 GJ2 1,000 14 GJ2 11,500 15 GJ2 2,000 23,500 3,000 Balance 20,500 ACCOUNTS RECEIVABLE 102 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 20,000 Jan 14 GJ2 11,500 9 GJ1 18,700 38,700 11,500 Balance 27,200 OFFICE SUPPLIES 103 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 5,000 5,000 - Balance 5,000 OFFICE EQUIPMENT 150 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 3,500 16 GJ2 5,000 8,500 - Balance 8,500
- 8. ACCOUNTS PAYABLE 201 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 15,000 7 GJ1 20,350 16 GJ2 5,500 - 40,850 Balance 40,850 INCOME TAX PAYABLE 207 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 2,200 - 2,200 Balance 2,200 MARTINEZ, CAPITAL 300 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 25,500 - 25,500 Balance 25,500 SERVICE REVENUE 400 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 9 GJ1 17,000 - 17,000 Balance 17,000
- 9. SALARIES & WAGES EXPENSE 500 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 15 GJ2 2,500 2,500 - Balance 2,500 UTILITIES EXPENSE 500 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 15 GJ2 1,000 1,000 - Balance 1,000 REPAIRS & MAINTENANCE EXPENSE 500 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 7 GJ1 1,850 16 GJ2 500 2,350 - Balance 2,350
- 10. ADVERTISING EXPENSE 500 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 7 GJ1 18,500 18,500 - Balance 18,500
- 11. After posting the transactions, the balances of the ledger accounts must be determined. The balances will be used in preparing a trial balance.
- 12. The following procedures and guidelines must be remembered in determining the account balances.
- 13. CASH 101 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 12,000 Jan 13 GJ2 1,000 14 GJ2 11,500 15 GJ2 2,000 23,500 3,000 Balance 20,500 Add the debits and write the sum in superscript.
- 14. CASH 101 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 12,000 Jan 13 GJ2 1,000 14 GJ2 11,500 15 GJ2 2,000 23,500 3,000 Balance 20,500 Add the credits and write the sum in superscript.
- 15. CASH 101 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 12,000 Jan 13 GJ2 1,000 14 GJ2 11,500 15 GJ2 2,000 23,500 3,000 Balance 20,500 Then determine if the account has a debit balance or credit balance. In this case, because the total debits is more than the total credits, the Cash account has a debit balance. Double rule the balance.
- 16. All ledger balances must be determined. The ledger balances of each account will be as follows:
- 17. CASH 101 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 12,000 Jan 13 GJ2 1,000 14 GJ2 11,500 15 GJ2 2,000 23,500 3,000 Balance 20,500 ACCOUNTS RECEIVABLE 102 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 20,000 Jan 14 GJ2 11,500 9 GJ1 18,700 38,700 11,500 Balance 27,200 There is no need to write the total credit (or OFFICE SUPPLIES of an account if there is only one debit) 103 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 credit (or debit). GJ1 5,000 There is also no need to write the total of 5,000 - Balance 5,000 debits (or credits) in superscript if there is no credit (or debit). OFFICE EQUIPMENT 150 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 3,500 16 GJ2 5,000 8,500 - Balance 8,500
- 18. ACCOUNTS PAYABLE 201 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 15,000 7 GJ1 20,350 16 GJ2 5,500 - 40,850 Balance 40,850 INCOME TAX PAYABLE 207 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 2,200 - 2,200 Balance 2,200 MARTINEZ, CAPITAL 300 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 25,500 - 25,500 Balance 25,500 SERVICE REVENUE 400 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 9 GJ1 17,000 - 17,000 Balance 17,000
- 19. SALARIES & WAGES EXPENSE 500 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 15 GJ2 2,500 2,500 - Balance 2,500 UTILITIES EXPENSE 500 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 15 GJ2 1,000 1,000 - Balance 1,000 REPAIRS & MAINTENANCE EXPENSE 500 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 7 GJ1 1,850 16 GJ2 500 2,350 - Balance 2,350
- 20. ADVERTISING EXPENSE 500 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 7 GJ1 18,500 18,500 - Balance 18,500
- 21. After determining the account balances, a trial balance will be prepared.
- 22. CASH 101 DATE PARTICULARS PR DEBIT DATE PARTICULARS PR CREDIT Jan 1 GJ1 12,000 Jan 13 GJ2 1,000 14 GJ2 11,500 15 GJ2 2,000 23,500 3,000 Balance 20,500 SAMPLE SERVICING COMPANY TRIAL BALANCE AS OF JANUARY 15, 2011 DEBIT CREDIT CASH 20500 ACCOUNTS RECEIVABLE 27200 OFFICE SUPPLIES The totalCash has a debit balance it is 5000 Because debits must equal the total OFFICE EQUIPMENT 8500 credits.in the debit column of the 40850 Double rule the totals. trial placed PAYABLE ACCOUNTS balance.TAX PAYABLE with credit balances INCOME Accounts MARTINEZ, CAPITAL 2200 25500 must be REVENUE on the credit column of SERVICE placed 17000 the trial balance. EXPENSE SALARIES & WAGES 2500 UTILITIES EXPENSE 1000 REPAIRS & MAINTENANCE EXPENSE 2350 ADVERTISING EXPENSE 18500 TOTAL 85550 85550
- 23. A little bit of caution... The equality of total debits and total credits in the trial balance does not guarantee the absence of errors.
- 24. The financial statements can now be prepared using the amounts in the trial balance.
- 25. SAMPLE SERVICING COMPANY TRIAL BALANCE AS OF JANUARY 15, 2011 DEBIT CREDIT SAMPLE SERVICING COMPANY CASH 20500 STATEMENT OF RECOGNIZED INCOME AND EXPENSES ACCOUNTS RECEIVABLE 27200 For the period ended January 15, 2011 OFFICE SUPPLIES 5000 OFFICE EQUIPMENT 8500 Service Revenue 17,000 ACCOUNTS PAYABLE 40850 Salaries & Wages Expense (2,500) INCOME TAX PAYABLE 2200 Utilities Expense (1,000) MARTINEZ, CAPITAL 25500 Repairs & Maintenance Expense (2,350) SERVICE REVENUE 17000 Advertising Expense (18,500) SALARIES & WAGES EXPENSE 2500 Net income (Loss) (7,350) UTILITIES EXPENSE 1000 REPAIRS & MAINTENANCE EXPENSE 2350 ADVERTISING EXPENSE 18500 TOTAL 85550 85550
- 26. SAMPLE SERVICING COMPANY SAMPLE SERVICING COMPANY TRIAL BALANCE STATEMENT OF FINANCIAL POSITION AS OF JANUARY 15, 2011 DEBIT CREDIT As of Jan. 15, 2011 CASH 20500 Current Assets: ACCOUNTS RECEIVABLE 27200 The Capital account balance is Cash 20,500 OFFICE SUPPLIES 5000 computed as follows: Receivable Accounts 27,200 OFFICE EQUIPMENT 8500 Office Supplies 5,000 ACCOUNTS PAYABLE 40850 INCOME TAX PAYABLE 2200 Beginning capital P 25,500 Non-Current Asset: MARTINEZ, CAPITAL 25500 Office(Equipment 8,500 Net Loss 7,350) SERVICE REVENUE 17000 TOTAL ASSETS 61,200 SALARIES & WAGES EXPENSE 2500 Ending capital P 18,150 UTILITIES EXPENSE 1000 Current Liabilities: REPAIRS & MAINTENANCE EXPENSE 2350 Accounts Payable 40,850 ADVERTISING EXPENSE 18500 Income Tax Payable 2,200 TOTAL 85550 85550 Owner's Equity: Martinez, Capital 18,150 TOTAL LIABILITIES & EQUITY 61200