Managerial Accounting

Session – 2 – Preparation of Trial Balance

Prof. V Somasekhar
Department of Management Studies
Session 2 – Exercise 1 - Preparation of Trial Balance

Particulars Amount Particulars Amount

Purchases 8000 Sundry Creditors 5600
Rent Paid 240 Carriage 100
Gopalan’s Drawings 400 Insurance 40
Bills Receivables 1200 Cash in hand 100
Opening Stock 1000 Cash at Bank 1950
Purchases Returns 280 Commission Paid 40
Sales Returns 160 Bills Payable 1580
Plant & Machinery 4000 Discount Received 30
Sales 9600 Discount allowed 40
Sundry Debtors 5600 Gopalan’s Capital 7000
Furniture 500 Salaries 720
Session 2 – Exercise 1 - Preparation of Trial Balance

Particulars Amount Particulars Amount

Purchases 8000 Sundry Creditors 5600
Rent Paid 240 Carriage 100
Gopalan’s Drawings 400 Insurance 40
Bills Receivables 1200 Cash in hand 100
Opening Stock 1000 Cash at Bank 1950
Purchases Returns 280 Commission Paid 40
Sales Returns 160 Bills Payable 1580
Plant & Machinery 4000 Discount Received 30
Sales 9600 Discount allowed 40
Sundry Debtors 5600 Gopalan’s Capital 7000
Furniture 500 Salaries 720
Exercise 2 – Preparation of Trial Balances – correct the Trial Balance

Particulars Debit Credit

Capital 24,000
Opening Stock 8,500
Furniture 2,600
Purchases 8,950
Cash at Bank 7,300
Carriage 300
Sales 22,500
Buildings 12,000
Returns inwards 1,900
Returns outwards 350
Trade Expenses 1,000
Discounts received 970
Salary 3,000
Office Rent 2,270
Total 60,020 35,620
Exercise 2 – Preparation of Trial Balances – Errors in the Trial Balance

Particulars Debit Credit

Capital 24,000
Opening Stock 8,500
Furniture 2,600
Purchases 8,950
Cash at Bank 7,300
Carriage 300
Sales 22,500
Buildings 12,000
Returns inwards 1,900
Returns outwards 350
Trade Expenses 1,000
Discounts received 970
Salary 3,000
Office Rent 2,270
Total 60,020 35,620
Exercise 2 – Preparation of Trial Balances – corrected Trial Balance

Particulars Debit Credit

Capital 24,000
Opening Stock 8,500
Furniture 2,600
Purchases 8,950
Cash at Bank 7,300
Carriage 300
Sales 22,500
Buildings 12,000
Returns inwards 1,900
Returns outwards 350
Trade Expenses 1,000
Discounts received 970
Salary 3,000
Office Rent 2,270
Total 47,820 47,820
Exercise 3 – Preparation of Trial Balances – correct Trial Balance

Particulars Debit Credit

Purchases 60,000
Reserves Fund 20,000
Sundry Debtors 80,000
Sundry Creditors 30,000
Cash at Bank 5,000
Assets 50,000
Sales 1,00,000
Capital 94,000
Purchases returns 1,000
Sales Returns 2,000
Opening Stock 30,000
Closing Stock 40,000
Expenses 20,000
Outstanding Expenses 2,000
Suspense account 10,000
Exercise 3 – Preparation of Trial Balances – errors in Trial Balance

Particulars Debit Credit

Purchases 60,000
Reserves Fund 20,000
Sundry Debtors 80,000
Sundry Creditors 30,000
Cash at Bank 5,000
Assets 50,000
Sales 1,00,000
Capital 94,000
Purchases returns 1,000
Sales Returns 2,000
Opening Stock 30,000
Closing Stock 40,000
Expenses 20,000
Outstanding Expenses 2,000
Suspense account 10,000
Exercise 3 – Preparation of Trial Balances – corrected Trial Balance

Particulars Debit Credit

Purchases 60,000
Reserves Fund 20,000
Sundry Debtors 80,000
Sundry Creditors 30,000
Cash at Bank 5,000
Assets 50,000
Sales 1,00,000
Capital 94,000
Purchases returns 1,000
Sales Returns 2,000
Opening Stock 30,000
Expenses 20,000
Outstanding Expenses 2,000
Total 2,47,000 2,47,000