From Trail Balance to Balance Sheet

This topic has 2 replies, 2 voices, and was last updated 12 years ago by Deelo.

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February 16, 2014 at 10:41 am #158957
Deelo
Member
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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.
February 16, 2014 at 2:45 pm #158980
John Moffat
Keymaster
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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!!)
February 16, 2014 at 3:15 pm #158987
Deelo
Member
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- Replies: 31
Sorry, John. I made a mistake in my trail balance.

Here’s the correct TB:

Bank 2240 (DR)
Van 6400 (DR)
Office Furniture 1500 (DR)
Van 7100 (DR

Capital 15820 (CR)

A/C Payable 900 (CR)
Cash 520 (CR)

Also, I know it is called Statement of Financial Position.
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