tliama mhtaa numamt finrSueful Ser nee prepared the followin

(tliama) mhtaa numamt finrSueful Ser nee prepared the following \"Adjusted\" Trial Balance at ? Debit Credit S 5,700 4,500 2.100 18,300 Lnexprect ric 600 3,600 15,300 2,700 Ritaameti Earnings. anuary L21 Consuiting Fss Eam Saliartiess ipense thilitiess lEspen 1,100 21,200 1,800 2,700

Solution

A trail balance is a statement showing all the debits and credits in the books maintained as per double entry principle.

As per the accounting principles, All the incomes and liabilities will show credit balance and all the expenses and assets will show debit balance. Prepaid Expenses, Incomes accrued but not received will fall into asset category. Outstanding Expenses, Expenses payable will fall into liabilities category. Items of Capital nature will show credit balance.

At any point of time Trail balance of an organisation should be matching. Disagreement of trail balance represents that error was commited in passing journal entries or ledger postings.

Generally Dividend will be an Income to Share holder , hence will be shown as credit item in Trail balance.Since in In the above given trail balance Dividends are taken as debit item, It is assumed that the dividends are paid.

If it is not the case, Trail balance will not be matching, which shows some error has been commited in accounting process.