UnitFive会计英语第五单元课件.pptVIP

Unit Five Accounting cycle (二) Trial Balance Learning Objectives: 1 What is trial balance? 2 How to prepare trial balance? 3 Uses and limitations of trial balance? Contents: 一 Definition _______ The proof of the equality of the debit and credit balances. because a “trial” is a process of proving or testing. 二 How to prepare trial balance? The first step in preparing the trial balance is to determine the balance of each account in the ledger. A Corp. Trial Balance November 30, 2010 A Trial Balance Account titles Debit (Dr.) Credit (Cr.) Cash $5990 Supplies $550 Land $20000 Accounts Payable $400 White, Capital $25000 White, Drawing $2000 A Trial Balance Fees Earned $7590 Wages Expense $2125 Rent Expense $800 Utilities Expense $450 Supplies Expense $800 Misc. Expense $275 total $32900 $32900 三 If you incorrectly record $1000 received on account as a debit to cash and a credit to Accounts Payable, will the trial balance totals be equal? Yes! The trial balance dose not prove complete proof of the accuracy of the ledger, it indicates only that the debits and the credits are equal. 四 Discovery and Correction of Errors 1 Trial balance preparation errors (1)column incorrectly added (2) Amount incorrectly entered on trial balance (3) Balance entered in wrong column or omitted 2 Account balance errors (1) Balance incorrectly computed (2) Balance entered in wrong column of account 3 Posting errors (1 ) Wrong amount posted to an account (2) Debit posted as credit, or vice versa (3) Debit or credit posting omitted Pay Attention:1 procedures for correcting errors Errors Corrections Procedures 1 journal entry is incorrect but not posted Draw a line through the error and insert correct title or amount. 2 journal entry is correct but posted incorrectly Draw a line through the error and post correctly. 3 journal entry is incorrect and posted Journalize and post a correcting entry. Such as: (3) Assume that on May 5, a $12500 purchase of office equipment