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CH 6
CH 6
CH 6
Chapter 6
The trial balance
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12th Edition, © Pearson Education Limited 2012
Slide 6.2
Learning objectives
After you have studied this chapter, you
should be able to:
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12th Edition, © Pearson Education Limited 2012
Slide 6.3
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12th Edition, © Pearson Education Limited 2012
Slide 6.4
20X6 May 1 Started in business with capital in cash of £800 and £2,200
in the bank.
== 2 Bought goods on credit from the following persons: J Ward £610;
P Green £214; M Taylor £174; S Gemmill £345; P Tone £542.
== 4 Sold goods on credit to: J Sharpe £340; G Boycott £720; F Titmus
£1,152.
== 6 Paid rent by cash £180.
== 9 J Sharpe paid us his account by cheque £340.
== 10 F Titmus paid us £1,000 by cheque.
== 12 We paid the following by cheque: M Taylor £174; J Ward £610.
== 15 Paid carriage by cash £38.
== 18 Bought goods on credit from P Green £291; S Gemmill £940.
== 21 Sold goods on credit to G Boycott £810.
== 31 Paid rent by cheque £230.
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12th Edition, © Pearson Education Limited 2012
Slide 6.6
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12th Edition, © Pearson Education Limited 2012
Slide 6.7
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12th Edition, © Pearson Education Limited 2012
Slide 6.8
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12th Edition, © Pearson Education Limited 2012
Slide 6.9
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12th Edition, © Pearson Education Limited 2012
Slide 6.10
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12th Edition, © Pearson Education Limited 2012
Slide 6.11
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12th Edition, © Pearson Education Limited 2012
Slide 6.13
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12th Edition, © Pearson Education Limited 2012
Slide 6.14
Learning outcomes
You should have now learnt:
1. How to prepare a trial balance
2. That trial balances are one form of
checking the accuracy of entries in the
accounts
3. That errors can be made in the entries to
the accounts that will not be shown up by
the trial balance
4. That the trial balance is used as the basis
for preparing income statements and
statements of financial position
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12th Edition, © Pearson Education Limited 2012