Learning Goal: I’m working on a accounting writing question and need the explanation and answer to help me learn.
As the balance are to be extracted from the ledger accounts, frist go to the ledger accounts of each and every head of accounts,see the amount appearing in the ‘balance b/d’ and the side it appears.
Post it to the Trial Balance by writing the name of account to the respective side.
Now total the debit column and credit column in the Trial Balance. Both the totals should tally with each other if not verify the posting,totalling,carry forward and transferring to the Trial Balance.
For this purpose, the following rules are worth remembering
DEBIT BALANCES
Assets
Expenses
Losses
Drawing
Opening Stock
CREDIT BALANCES
Liabilities
Incomes
Grains
Capital
Reserves
Provisions
