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Trial
balance |
1. Print the trial balance that lists a year to date total of each major class of receipts and payments of your business for the current year and the prior year.
2. The extended trial balance below summarises how the software has merged the data you have entered to create the trial balance. Use it to find the source of errors that may have occurred if your accounts do not reconcile to the supporting documents in the trial balance column of our summary below.
Note on VAT
Gross
includes VAT. Net is before VAT is added on. If your business is not registered
for VAT or there is no VAT due on the sale or expense, then VAT is ignored and
net will be the same amount as gross. All amounts in control lines are gross.
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Spot
checks |
1. Ensure the trial balance total is zero. If it is not, your software has not been set up correctly and you should contact the supplier of the software.
2. Agree customer control to the debtors’ aged analysis that has been agreed to the customer statements.
3. Agree supplier control to the creditor’s aged analysis that has been agreed to the supplier statements.
4. Agree a credit VAT balance in the trial balance to your payment due to the Vat office and a debit VAT balance to the receipt you expect from the VAT office for the period, whichever case is relevant.
5. Agree the bank line in the trial balance column to the cashbook total of the bank summary.
6. Make sure income accounts and liability (money owed by you) accounts are in credit, and expense and asset accounts (see balance sheet section for a definition of assets) are in debit.
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Extended trial balance |
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List of sales |
Receipts |
List of purchases |
Payments |
Money owed to you |
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Trial balance |
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Bank |
Cash |
Bad debt |
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Turnover |
(Net) |
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Agree to sales
list net |
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Direct costs |
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net |
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Agree to
purchase list net |
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Light & Heat |
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net |
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Agree to
purchase list net |
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Prof fees |
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net |
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Agree to
purchase list net |
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Tools |
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net |
net |
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Agree to bank
payments net |
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Wages |
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Net (no VAT) |
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Agree to bank
payments net |
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Cleaning |
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net |
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Agree to cash
payments net |
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Trains |
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net |
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Agree to cash
payments net |
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Bad debt |
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Net |
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Money owed to
you |
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Customer control |
gross |
(From customers) |
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(Gross) |
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Agree to money
owed to you |
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Supplier control |
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(gross) |
To suppliers |
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Agree to money
owed by you |
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VAT control |
(VAT) |
(From VAT office) |
VAT |
VAT |
VAT |
VAT |
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Agree to VAT
received or paid |
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Bank control |
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Agree to bank receipts |
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(Agree to bank payments) |
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Agree to
cashbook balance |
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Cash control |
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Cash drawn |
(Gross) |
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Agree to cash
left over |