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Balancing Ledger/T Accounts - Urdu/Hindi - Get Ahead in Cambridge Accounting 7707 / 9706 with Tips
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Balancing A T-Account/Ledger Account
1- Identify the bigger side. Find the side which has bigger total. (Dr or Cr.)
2- Get a total
3- Write the same total on the other side of the T Account
4- Write difference amount in the smaller side as "Balance C/D"
5- Opposite to "Balance C/D" write "Balance B/D" with the first date of the next month.
Purpose of Trial Balance:
First Purpose: To check the arithmetic accuracy of accounting records
The total on the Dr. Side and Cr. Side should agree or should be equal. Otherwise it will be taken as a sign of wrong recording of accounting transactions.
Second Purpose: Facilitate the errors’ identification
Third Purpose: To assist in the preparation of the financial statements (Income Statement & Statement of Financial Position)
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