debtors Opening stock Plant and Machinery Land and Building (Premises) Furniture and Fixtures Vehicles Goodwill Investment Drawings Purchases Sales returns Carriage inwards Carriage outwards Rent paid Commission paid Interest paid Bad debts Insurance premium General expenses Sundry expenses Electricity charges Selling expenses Travelling expenses Wages Sales Purchases returns Capital Bank loan Sundry creditors Bills payable Bank overdraft Rent received Interest received Provision for bad debts Total Accountancy - Tutorial note . If the value of closing stock is known on the day when trial balance is prepared, then opening stock and closing stock are adjusted with purchases. Hence, opening stock will not appear in the trial balance. Closing stock and adjusted purchases will appear in the trial balance.
If the value of closing stock is not known then opening stock and purchases will appear in the trial balance. Thus, either opening stock and purchases or closing stock and adjusted purchases will appear in the trial balance. . Under balance method, if an account does not have a balance, it is excluded.
Student activity Think: Analyse the above format. Can you identify accounts that have only debit balances/ credit balances always? Tutorial note There are certain accounts which have only debit balances. Similarly, certain accounts have only credit balances.
The following chart gives examples of such accounts: For example, the following transactions took place in the business of Rathna Kumar, who deals in textiles. January Commenced business with capital , , Bought furniture for cash , Purchased goods for cash , Bought goods on credit from Jeyanthi , Returned goods to Jeyanthi , Sold goods for cash , Sold goods to Elizabeth on credit , Paid salaries to Krishnan by cash , Received commission from Kumar by cash , Received cash from Elizabeth , The journal entries, ledger postings and trial balance for