topic 3 balancing off accounts + trial balance

• Bal cd - the closing balance at the end of the month which is then carried forward to the next month (bal bd)
• Explain the process for balancing off accounts - There are two accounts effected in a transaction. Recording these transactions could either increase or decrease the total sum of entries on a given account. We add them all up to find the total on each side. The lower side will be balanced with a bal cd with the amount needing to make both sides balance and then on the other side you put bal bd
• Explain the usefulness of the trial balance:

  • checks to ensure double entry procedure is followed
  • arithmetical accuracy
  • both the debit and credit sides are totalled
  • both sides must agree
  • if it does not agree mistakes can be corrected
  • some errors may not be identified in the trial balance