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I have made general double entries from Frank Wood’s book and after passing general entries I made t-accounts, and then the Trail Balance.
My Trail Balance is equal. But I am not managing to make a financial statement from my Trail Balance.
Here’s my TB:
Bank 2240 (DR)
Capital 15820 (CR)
Van 6400 (DR)
Office Furniture 1500 (DR)
A/C Payables 900 (CR)
Van 7100 (DR)
Cash 520 (DR)Can anyone please prepare a Balance sheet from this?
Thanks.I am not surprised that you cannot prepare a Statement of financial position (it is not called Balance Sheet any more) – your trial balance does not balance.
Your debit balances add up to 17760, but your credit balances add up to 16720.
I guess that your cash balance should really be a credit balance (overdraft) and therefore a current liability.
I suggest that you work through chapters 2 and 3 of our course notes and watch the lectures that go with them – they are all free (and are up-to-date!!)
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