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Balancing an account and trial balance

  • 5 posts
  • # 54677

Hello every one

                         This is my first post, i was just wondering if anyone could help me. I am struggling with balancing an account. The problem is when the right hand side total of the account is larger than the left, how would you balance the account in this situation ? Also when you have a trial balance how do you know what side of the trial balance to put the ledger balances on ? Any help would be appreciated thanks guys

  • 273 posts
  • # 54678

There would have to be a missing entry or the addition is incorrect

1. Check addition on both sides first

2. Check you have included all entries on Trial Balance

3. Check you have included all entries from Bank Statements etc etc

Let me know how you get on

  • 273 posts
  • # 54679

Sorry Craig just picked up last query

Have you got the ICB text book yet or are you doing a course?

  • 5 posts
  • # 54690

Hello Liz

                Yes i have started my course with home learning college, and i do have the ICB text book. Thanks for your help Liz im understading it all a bit better thanks.

  • 160 posts
  • # 54691

Hi Archie,

as a rule of thumb, total both sides up, then the smallest one calsulate the difference between them, then balance c/f with the difference to equal both sides up, put in between two lines the two balances, then balance b/f with the c/f amount on the opposite side to that of the c/f balance, hope that this helps

Regards

Paula Welsh 

  • 9 posts
  • # 54696

Nice one Paula, I was sitting heer thinking about how to write it out so it mad esome sort of sense, thankfully you beat me to it!

  • Practice Licence
  • 698 posts
  • # 54697

Hi All

There as some good answers in this thread however no one has got to the nub of what the problem is.

Firstly what account are you having the problem with Archie is a nominal account an account within the sales and purchase ledgers.

Does your trial balance balance craig?

It is important to understand why it does not balance before suggesting how it should be dealt with.

If craig is simply having with and issue with closing the ledger balance and Carrying forward the balance to the next period then Paula answer is correct. However if this is not the issue and there are errors in the account then to balance off the account to force it to agree is the wrong approach.

Kind regards
Stuart

  • 5 posts
  • # 54731

Hey Guys

               Thank you for all your responses the advice and help has been fantastic. The problem was how to balance an account for example a bank account that has a more credit entries than debit entries, therefore creating a credit balance.  The trial vbalance problem was which side of the trial balance should the ledger balances be recorded on ?Both problems are more clear to me now. Once again a big thank you for all your help i really appreciated it very much.

Kind Regards

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