How to redraft a trial balance
After the journals, every balance they touch has to change. Update the balances and prove that the trial balance now agrees.
Task 1How a journal changes a balance4 questions
To redraft a trial balance, take each balance and apply the journals to it. A debit raises a debit balance and lowers a credit balance. A credit does the opposite.
| Account | Debit | Credit |
|---|---|---|
| Bank | 6,250.00 | |
| Trade receivables | 9,870.00 | |
| Van | 12,500.00 | |
| Purchases | 38,400.00 | |
| Wages | 21,330.00 | |
| Rent | 4,400.00 | |
| Electricity | 1,360.00 | |
| Telephone | 540.00 | |
| Sales | 72,300.00 | |
| Trade payables | 7,830.00 | |
| Capital | 15,000.00 | |
| Suspense | 480.00 | |
| Total | 95,130.00 | 95,130.00 |
| Journal | Debit | Credit | Amount |
|---|---|---|---|
| 1 | Rent | Suspense | 400.00 |
| 2 | Suspense | Trade receivables | 270.00 |
| 3 | Purchases | Suspense | 350.00 |
| 4 | Telephone | Electricity | 60.00 |
Task 2Proving the redraft3 questions