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  • T Account Posting

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    Waqar Aamir Katiar
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    Mr. Goher invested 700,000 in a business. He purchased a building for 250,000 cash and paid 100,000 to a creditor. He also purchased a machine for 250,000, paying 150,000 cash and the remaining 100,000 as an account payable. To balance T accounts, totals from both sides are compared and the difference is carried down as a balance, which is then brought forward after accounts are closed periodically. Trial balances check for correct posting by ensuring both sides are equal, and are used to prepare an income statement and balance sheet.

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    T Account Posting

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    Mr. Goher invested 700,000 in a business. He purchased a building for 250,000 cash and paid 100,000 to a creditor. He also purchased a machine for 250,000, paying 150,000 cash and the remaining 100,000 as an account payable. To balance T accounts, totals from both sides are compared and the difference is carried down as a balance, which is then brought forward after accounts are closed periodically. Trial balances check for correct posting by ensuring both sides are equal, and are used to prepare an income statement and balance sheet.

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    Download as PDF, TXT or read online from Scribd
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    260 views2 pages

    T Account Posting

    Uploaded by

    Waqar Aamir Katiar
    Mr. Goher invested 700,000 in a business. He purchased a building for 250,000 cash and paid 100,000 to a creditor. He also purchased a machine for 250,000, paying 150,000 cash and the remaining 100,000 as an account payable. To balance T accounts, totals from both sides are compared and the difference is carried down as a balance, which is then brought forward after accounts are closed periodically. Trial balances check for correct posting by ensuring both sides are equal, and are used to prepare an income statement and balance sheet.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 2

    Pay Thanks to Allah, not to me

    Waqar Aamir Katiar


    Contact No. 031-22-22-99-69, 0300-2831681

    T Account Posting
    T account called T account according to its shape. It has 2 side first is left side
    or Debit. Second is right side which one is credit. When an account debited it
    should be posted on left side, when it is credited it will be posted in credit side.

    We can understand it through an example

    Mr. Goher invested 700000in a business. With his investment of 500000

    Cash 700000
    Capital 500000
    Account Payable 200000

    He Purchase a building on cash 250000

    Building 250000
    Cash 250000

    He Paid to Creditor 100000

    Account Payable 100000


    Cash 100000

    He purchased a machine worth of 250000. He paid 150000 cash

    Machine 250000
    Cash 150000
    Account Payable 100000
    Pay Thanks to Allah, not to me
    Waqar Aamir Katiar
    Contact No. 031-22-22-99-69, 0300-2831681

    Balancing an account
    First of all you total both sides. One of them will be greater then other. Write
    that greater total value at both sides. Less the total amount of less side. You
    will get the difference of that account. Name it Balance C/D means balance
    carried down. Write this amount under the total of greater amount with a
    name of Bal B/F Balance brought forward. It is an opening balance after
    closing account after a certain period.

    After closing all accounts we will find closing balances of accounts. These
    balances will be posted in trail balance. Trail balance is also a check on
    business transparency and correctness of posting. If both sides of trail balance
    are not equal it means some transaction is posted wrong.

    From trial balance we will make Income Statement and Balance Sheet

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