{"id":1397,"date":"2023-09-28T14:07:21","date_gmt":"2023-09-28T14:07:21","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=1397"},"modified":"2023-09-28T14:07:57","modified_gmt":"2023-09-28T14:07:57","slug":"week-6-jss-3-first-term-business-studies-lesson-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-6-jss-3-first-term-business-studies-lesson-notes\/","title":{"rendered":"Week 6 – Jss 3 First Term Business Studies Lesson Notes"},"content":{"rendered":"

WEEK 6
\n<\/strong>TOPIC: TRIAL BALANCE
\n<\/strong>A trail balance is a statement that shows the balances of all ledgers. It is the statement that shows both the debit and credit balances of the ledger. Its extracted before the preparation of final account to test the arithmetical accuracy of the ledger.
\nUses of Trial Balance
\n<\/strong><\/p>\n

\n\n\n\n\n\n
\n
    \n
  1. \n
    Trial balance is used to test the arithmetical accuracy of ledgers<\/div>\n<\/li>\n<\/ol>\n<\/td>\n<\/tr>\n
\n
    \n
  1. \n
    Final account can be prepared using trial balance<\/div>\n<\/li>\n<\/ol>\n<\/td>\n<\/tr>\n
\n
    \n
  1. \n
    It is used to correct errors or to reveal errors<\/div>\n<\/li>\n<\/ol>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    Rules for preparing Trial Balance
    \n<\/strong><\/p>\n

    \n\n\n\n\n\n
    \n
      \n
    1. \n
      Post all the items to the necessary ledger accounts<\/div>\n<\/li>\n<\/ol>\n<\/td>\n<\/tr>\n
    \n
      \n
    1. \n
      Balance the ledger to extract their balances<\/div>\n<\/li>\n<\/ol>\n<\/td>\n<\/tr>\n
    \n
      \n
    1. \n
      Rule your trial balance<\/div>\n<\/li>\n<\/ol>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

      \u00a0\"\"\/\"\"\/\"\"\/Particulars \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Dr\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cr<\/p>\n

      \u00a0<\/p>\n

        \n
      1. \n
        Any account without any balance should not be posted to trial balance because it has been closed\n<\/div>\n<\/li>\n
      2. \n
        If your debit side of the trial balance is not equal to the credit side, you have committed one of the following error:-\n<\/div>\n
          \n
        1. \n
          Error of omission\n<\/div>\n<\/li>\n
        2. \n
          Error of commission\n<\/div>\n<\/li>\n
        3. \n
          Error of principle\n<\/div>\n<\/li>\n
        4. \n
          Error of original entry\n<\/div>\n<\/li>\n
        5. \n
          Compensating error\n<\/div>\n<\/li>\n
        6. \n
          Complete reversal of entry\n<\/div>\n<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

          Second method of preparing Trial Balance:
          \n<\/strong><\/p>\n

            \n
          1. \n
            Debit items: all assets must be debited e.g. stock, building, motor van, debtors, cash etc.\n<\/div>\n<\/li>\n
          2. \n
            Expenses \u2013 all expenses must be debited e.g. wages, rates, depreciation, insurance etc.\n<\/div>\n<\/li>\n
          3. \n
            Credit item \u2013 credit all the liabilities e.g. bank loan, creditors, bills payables, capital, accrual expenses, gross profit, net profit, discount received etc.\n<\/div>\n<\/li>\n<\/ol>\n

            1st<\/sup> Method
            \nFrom the following information of Madam cash Nig. Ltd, open necessary ledger accounts and extract trial balance as at July, 2005.
            \nJuly 1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0started business with \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0950 cash
            \nJuly 5\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0sold goods worth \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a07000 cash
            \nJuly 7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0purchase a motor van by cash\u00a0\u00a0\u00a0\u00a03200
            \nJuly 10\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0pays salaries by cash \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0400
            \nJuly 12\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0paid wages by cash \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0200
            \nJuly 14\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0cash sales \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02000
            \nCASH BOOK<\/p>\n

            \n\n\n\n\n
            Date<\/td>\nParticulars <\/td>\nF <\/td>\nCash<\/td>\nDate<\/td>\nParticular<\/td>\nF <\/td>\nCash <\/td>\n<\/tr>\n
            July 1
            \nJuly 5
            \nJuly 14<\/p>\n

            \u00a0
            \n\u00a0Aug. 1<\/td>\n

            		Capital
            \nSales
            \nSales <\/p>\n

            \u00a0
            \n\u00a0Bal. b\/d<\/td>\n

            		\u00a0<\/td>\n950
            \n7,000
            \n2,000<\/p>\n

            \u00a0\"\"\/\"\"\/\"\"\/9,950
            \n6,150<\/td>\n

            		July 7
            \nJuly 10
            \nJuly 12<\/td>\n            		Motor van
            \nSalary
            \nWages
            \nBal. c\/d<\/td>\n            		\u00a0<\/td>\n3,200
            \n400
            \n200
            \n6,150
            \n\"\"\/\"\"\/\"\"\/9,950<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

            \u00a0LEDGER ACCOUNT
            \n<\/strong>\"\"\/\"\"\/ Capital Account
            \n\"\"\/Bal. c\/d\u00a0\u00a0\u00a0\u00a0950\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0July 1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cash\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0950
            \n\"\"\/\"\"\/\"\"\/\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0950\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0950
            \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bal. b\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0950
            \n\"\"\/\"\"\/Sales Account
            \nBal. c\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a09000\u00a0\u00a0\u00a0\u00a0July 5\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cash\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a07000
            \n\"\"\/\"\"\/\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0July 14\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cash\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02000
            \n\"\"\/\"\"\/\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a09000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a09000
            \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bal. b\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a09000<\/p>\n

            \u00a0\"\"\/\"\"\/Motor Van Account
            \n\"\"\/\"\"\/\"\"\/July 7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cash\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03200\u00a0\u00a0\u00a0\u00a0Bal. c\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03200
            \n\"\"\/\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03200\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03200
            \nBal. b\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03200<\/p>\n

            \u00a0\"\"\/\"\"\/Salary Account
            \n\"\"\/\"\"\/\"\"\/July 10 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cash\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0400\u00a0\u00a0\u00a0\u00a0Bal. c\/d \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0400
            \n\"\"\/\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0400\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0400
            \nBal. b\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0400<\/p>\n

            \u00a0\"\"\/\"\"\/Wages Account
            \nJuly 12\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cash\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0200\u00a0\u00a0\u00a0\u00a0Bal. c\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0200
            \n\"\"\/\"\"\/\"\"\/\"\"\/\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0200\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0200
            \nBal. b\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0200<\/p>\n

            \u00a0Madam Cash Trial Balance as at 30 July, 2008<\/p>\n

            \n\n\n\n\n
            Particular<\/strong><\/td>\n (DR) #<\/strong><\/td>\n (CR) #<\/strong><\/td>\n<\/tr>\n
            Capital
            \nSales
            \nMotor van
            \nSalary
            \nWages
            \nCash <\/td>\n            		\n\u00a0
            \n\u00a0 3,200
            \n 400
            \n 200
            \n\"\"\/\"\"\/ 6150
            \n\"\"\/
            \n\t\t\t\t\t\t\t\t9,950<\/strong><\/td>\n            		 950
            \n 9000<\/p>\n

            \u00a0
            \n\u00a0
            \n\u00a0
            \n\u00a0\"\"\/ 9,950<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

            \u00a02nd<\/sup> Method
            \n<\/strong>If the balance of the ledger are given, you should prepare the trial balance quickly.
            \nExamples:
            \n<\/strong>Prepare trial balance from the following:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0#
            \nBuilding \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02000
            \nCapital\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02000
            \nEquipment \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a05000
            \nStock of finished goods \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01000
            \nMotor van \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03000
            \nCreditor\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a07000
            \nAccrued \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02000<\/p>\n

            \u00a0\"\"\/\"\"\/\"\"\/Trial Balance
            \n<\/strong>Particular\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
            \nCapital\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02000
            \nEquipment \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a05000
            \nStock \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01000
            \nMotor Van\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03000
            \nCreditor\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a07000
            \n\"\"\/Accrued \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02000
            \n\"\"\/\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a011,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a011,000<\/p>\n

            \t\t\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

            WEEK 6 TOPIC: TRIAL BALANCE A trail balance is a statement that shows the balances…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,130],"tags":[],"class_list":["post-1397","post","type-post","status-publish","format-standard","hentry","category-posts","category-first-term-jss-3-business-studies"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/1397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/comments?post=1397"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/1397\/revisions"}],"predecessor-version":[{"id":1398,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/1397\/revisions\/1398"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=1397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=1397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=1397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}