What is a trial balance and how should it be read?

Q: What should you look at when reading it?

Totals must be equal. In each pair of columns (Dt and Ct), the totals are equal. If they are not, there is an error somewhere. Cash and bank never show a credit balance. There can be no "negative money" in the till. Transit accounts (all accounts of the 9000–9900 group of the chart of accounts) must have no balance after they are closed at year end. Contra-asset accounts (0200, 0500) have a credit balance, and this is normal. Unusually large turnover deserves attention: why was there so much movement this month?

If a company were a person, the trial balance (in Uzbek, aylanma-saldo vedomosti) would be its X-ray. In a single table you can see, for each account, what there was, what changed and what remained.

How is the table structured?

Account	Opening balance (Dt / Ct)	Turnover (Dt / Ct)	Closing balance (Dt / Ct)
5010 Cash on hand	2 000 000 / –	8 000 000 / 9 000 000	1 000 000 / –

This line says: at the start of the month the till held 2 million, 8 million came in, 9 million went out, and 1 million remained at month end.

What should you look at when reading it?

Totals must be equal. In each pair of columns (Dt and Ct), the totals are equal. If they are not, there is an error somewhere.
Cash and bank never show a credit balance. There can be no "negative money" in the till.
Transit accounts (all accounts of the 9000–9900 group of the chart of accounts) must have no balance after they are closed at year end.
Contra-asset accounts (0200, 0500) have a credit balance, and this is normal.
Unusually large turnover deserves attention: why was there so much movement this month?

Example: what did Malika the accountant notice?

In the trial balance, Malika saw a credit balance in account 4010. That means customers did not owe the company money; on the contrary, they had overpaid. On checking, she found that an advance paid by a customer had been recorded in 4010 instead of 6310. One glance, and the error was found.

Test yourself

5 questions on this topic: pick an option or reveal the answer.

Monthly interest has been accrued on a bank loan taken for ordinary working capital. What journal entry is made?

At "Beshariq kulol" LLC, the credit turnover of 9010 for the reporting period was 120 000 000 soum, and 7 500 000 soum for returned finished products was collected on the debit of 9040 "Returns of goods (products) sold". There are no other entries. What amount is closed from 9010 to 9910 at period end?

Oltiariq Meva LLC transferred the accrued amount to state trust funds from its settlement account at the bank. Which journal entry is made under paragraph 280 of NAS No. 21?

It was found that a storekeeper at "Navoiy kabel" was at fault for material damage of 2 400 000 soum, and the amount was recorded in account 4730 as his debt. By agreement with the employee, the damage is withheld from his wages in equal parts over 3 months. How is each monthly deduction recorded?

120 packs of paper were issued from the warehouse for the needs of the head office (administration) of "Yashnobod plast" LLC; each is carried in the materials account at 45 000 soum. Under NAS No. 21, what journal entry and what amount are recorded?

Answered: 0 / 50 of 5 correct

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