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Journal Ledger Trial Balance
Journal Ledger Trial Balance
Topics covered:
Accounting Equation
Journal
Ledger
Trial Balance
ACCOUNTING EQUATION
OR
DUAL CONCEPT
Assets=Sources
Assets=Liabilities+ Capital
Assets=Liabilities+Owner’s equity
CLASSIFICATION
OF
ACCOUNTS:
Personal Account:-
Natural Personal Account i.e. account of natural or physical persons
e.g Ram’s A/c,
Sita’s A/c etc.
concern and with which the business is carried on.Real or assets accounts may be-
Nominal Account: Nominal or fictitious accounts are accounts of the expenses and
loses and income and gains which a concern earn in the course of its business-
Personal Accounts:
Debit the receiver
and
credit the giver
Real Accounts:
Debit what comes in
and
Credit what goes out
Nominal Account:
Debit expenses and loses
and
Credit incomes and gains
JOURNAL
• Errors of calculation
• Errors of omission of one entry
• Posting to the wrong side of an account
• Errors in amount
Errors not revealed by the Trial Balance:
• Errors of Commission
• Errors of Omission
• Errors of Principle
• Compensating errors
• Errors of Original entry
•Complete Reversal of entries
Methods for preparation of trial
balance
• Total method • Balances method
Trail balance is • Trail balance is made
prepared by taking on the basis of the
into account the totals balances of the
of debit and credit accounts. it is also
balances of each known as net trial
account recorded in balance.
the ledger.