JSS3 Second Term Business Studies Lesson Note – Forms of Trial Balance

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WEEK 8

TOPIC: FORMS OF TRIAL BALANCE

CONTENT:

• Reasons for Preparing (i) Trading Account (ii) Profit and Loss Account (iii) Balance Sheet.
• Sample of Trial Balance, Trading, Profit and loss Account and Balance sheet.

Sub topic 1:

TRADING ACCOUNT

Trading account is a final account prepared to determine gross profit or loss by a business. It is prepared at the end of each financial year.

PROFIT AND LOSS ACCOUNT

The profit and loss account is an account prepared to determine the real profit or loss, otherwise known as the net profit or loss.

BALANCE SHEET

A Balance Sheet is a statement that shows the financial summary of a business. It shows the net worth of a business.

Sub topic 2: SAMPLE OF A TRIAL BALANCE, TRADING ACCOUNT PROFIT AND LOSS ACCOUNT AND BALANCE SHEET

TRIAL BALANCE

Particulars	Debit	Credit
	#	#
Debtors	Xxx
Creditors		Xxx
Sales		Xxx
Purchases	Xxx
General expenses	Xxx
Sales return (return inwards)	Xxx
Discount received		Xxx
Discount allowed	Xxx
Rent on Premises	Xxx

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