Accounting entries of a trading concern and trial balance
After completing this module, you will be able to:
• Explain the double entry principle and to apply it practically. • Explain the following regarding the ledger accounts and apply those practically: – The purpose of a ledger account – The structure of a ledger account – Different columns, as well as debit and credit sides – Different sections of ledger accounts, namely the Balance Sheet and Nominal accounts sections
– Grouping of accounts in the ledger
• Enter the different transactions directly from the source document to the ledger account. • Explain the purpose of the Trial Balance. • Transfer the balances and totals from the ledger to the Trial Balance. • Test the correctness of the double entries by means of a Trial Balance and trace errors if the Trial Balance does not balance.
• Open accounts in the General Ledger from a given Trial Balance.
