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Pepe's Trial Balance

NOTE: value of closing stock 31.12.9- is £ 5500.

This is the trial balance for Pepe's Pizza Parlour. These figures have been taken from the balances of the "T" accounts. These figures are those from which the Trading and Profit and Loss Account and the Balance Sheet will be calculated.

It is good practice to remember if you use a balance from the Trial Balance, tick it off. If you use a figure from the notes at the end of the Trial Balance these should be used twice. This is because the balances in the Trial balance already have an equal and opposite balance within the accounts. The figures given in the notes need to have both a credit and debit entry. So the notes at the foot of the Trial balance should be ticked off twice.

The purpose of the Trading and Profit and Loss Account is to determine the business's profit or loss in the accounting period under review, so it would be for the financial year ending 31.12.9-.

The preparation of the Balance Sheet represents the business's financial position in terms of its assets, liabilities and capital.

So in general terms:

Let's look at Pepe's trial balance to see which balance goes to which account.

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