the trial balance of ramesh vyas as on 31st march 2013 was as follows
LectureNotes said the trial balance of Ramesh Vyas as on 31st March 2013 was as follows
Answer:
Below is a typical format of a trial balance, which usually lists all ledger account balances (both debit and credit) as on a specific date. While the exact figures from LectureNotes are not provided in your question, here’s an illustrative structure of how such a trial balance might appear.
Understanding the Trial Balance
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Purpose:
- The trial balance checks the arithmetic accuracy of the ledger accounts by comparing total debits to total credits.
- It serves as a preliminary step before preparing final accounts such as the Trading and Profit & Loss Account and the Balance Sheet.
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Components:
- Debit Column (Dr): Reflects accounts with debit balances (e.g., assets, expenses, drawings).
- Credit Column (Cr): Shows accounts with credit balances (e.g., liabilities, income, capital).
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Balancing:
- Ideally, the sum of the debit column should equal the sum of the credit column.
- Any discrepancy means there is an accounting error that needs to be investigated.
Illustrative Trial Balance Format
Account Name | Debit (Rs.) | Credit (Rs.) |
---|---|---|
Capital | 1,00,000 | |
Drawings | 25,000 | |
Furniture and Fixtures | 15,000 | |
Machinery | 50,000 | |
Purchases | 1,20,000 | |
Sales | 1,90,000 | |
Wages | 20,000 | |
Rent | 5,000 | |
Debtors | 30,000 | |
Creditors | 25,000 | |
Bank Loan | 20,000 | |
Cash in Hand | 2,000 | |
Discount Allowed | 1,000 | |
Discount Received | 2,000 | |
Totals | 2,68,000 | 2,68,000 |
Key Highlights:
- Debit items typically include assets and expenses.
- Credit items usually detail liabilities, revenues, and owners’ equity (capital).
- Equality of totals indicates that the ledger is arithmetically correct.
In practice, you would replace these illustrative amounts with the actual figures from LectureNotes to match the exact trial balance of Ramesh Vyas as on 31st March 2013.
If your goal is to finalize accounts:
- Transfer the purchases and sales to the Trading Account.
- Move expenses (e.g., wages, rent) and incomes (e.g., discount received) to the Profit & Loss Account.
- Assets, liabilities, and capital appear in the Balance Sheet.
Always ensure you double-check each ledger balance for accuracy before finalizing the trial balance.
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