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Trial Balance

  • 167 posts
  • # 71391

Hi

Can somebody please enlighten me on the correct order for items on a trial balance.

Many thanks

MartinSmile

  • Member PM.Dip
  • Practice Licence
  • 481 posts
  • # 71399

I don't think it matters. I have never put items in any set order. 

  • Fellow PM.Dip
  • Practice Licence
  • 258 posts
  • # 71401

It doesn't really matter but it helps if you put the balance sheet items (Fixed/current assets, current/long term liabilities, capital etc) on the top and the P/L items (sales/expenses) lower down.

  • 698 posts
  • # 71413

OMG

Yes it does matter how the Trial balance is set out!!!!

You should start with the balance sheet and then move from the balance sheet to the P&L.

A TB should follow the following Format

Fixed Assets
Current Assets
Current Liabilities
Long term Liabilities
Equity / Capital
Sales
C O G S
Direct Expenses
Overheads

Best regards
Stuart

  • Member PM.Dip
  • Practice Licence
  • 481 posts
  • # 71416

Stuart Wildman said:

OMG

Yes it does matter how the Trial balance is set out!!!!


OMG WHY??????????
Are you going to lose marks in an exam if you don't have them in that exact format?
Bear in mind the OP is a student and it is probably in that context they are thinking about just now - not when they are actually in a real life situation.

  • 167 posts
  • # 71417

Hi

Thanks for the interesting responses - not sure what an OP is though!

If it is exams or in practice presumably it has to be the same - would i get marked down if i had it in the wrong order.

Regards

Martin

  • 167 posts
  • # 71418

Thanks for the replies - it sounds logical to put them in the order suggested as this would tie up with the P & R and the balance sheet.

What is an OP?

  • Member PM.Dip
  • Practice Licence
  • 481 posts
  • # 71420

Acorn2oak said:

“Thanks for the replies - it sounds logical to put them in the order suggested as this would tie up with the P & R and the balance sheet.

What is an OP?”

OP = original poster, in this case - yourself.
I was just a bit annoyed at the tone of the response. If he had maybe said why it MATTERS other than it's good practise. I have never read in any of the books I've bought on bookkeeping any mention of set order - although the order mentioned is sensible. I was guessing the reason you asked the question was will it matter in an exam. Maybe someone from the ICB will come on and say "yes, you WILL lose marks" - I just can't see that happening and in an exam situation when you are pushed for time I wouldn't get too worried over it.

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