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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.

 

 

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.

 


 

 

Extended trial balance

 

List of sales

Receipts

List of purchases

Payments

Money owed to you

 

 

Trial balance

 

 

 

 

Bank

Cash

Bad debt

 

 

 

Turnover

(Net)

 

 

 

 

 

 

 

Agree to sales list net

Direct costs

 

 

net

 

 

 

 

 

Agree to purchase list net

Light & Heat

 

 

net

 

 

 

 

 

Agree to purchase list net

Prof fees

 

 

net

 

 

 

 

 

Agree to purchase list net

Tools

 

 

 

net

net

 

 

 

Agree to bank payments net

Wages

 

 

 

Net (no VAT)

 

 

 

 

Agree to bank payments net

Cleaning

 

 

 

 

net

 

 

 

Agree to cash payments net

Trains

 

 

 

 

net

 

 

 

Agree to cash payments net

Bad debt

 

 

 

 

 

Net

 

 

Money owed to you

Customer control

gross

(From  customers)

 

 

 

(Gross)

 

 

Agree to money owed to you

Supplier control

 

 

(gross)

To suppliers

 

 

 

 

Agree to money owed by you

VAT  control

(VAT)

(From VAT office)

VAT

VAT

VAT

VAT

 

 

Agree to VAT received or paid

Bank control

 

Agree to bank receipts

 

(Agree to bank payments)

 

 

 

 

Agree to cashbook balance

Cash control

 

 

 

Cash drawn

(Gross)

 

 

 

Agree to cash left over

 

 

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