B00K-KKKI'1\<. FOR FARMERS. 



9 1 3 



To Balance 



To Bank 



To Bank 



To Capital 



9. Sydney Plough Co. 

 30 By Plant 



£50 



10. Wages. 

 120 By Profit <fc ls>ss a/c 



£120 



11. Rent. 



80 By Profit <k Loss a/c 



£80 



12. Interest 

 50 I By Profit & Loss a/c 



£50 



Trial Balance. 



Neglecting the entries in italics, it is now possible to verify the correct- 

 ness of the posting (i.e., entering into the Ledger) by means of a trial 

 balance. The totals of each side of every account are added, and the results- 

 should be equal to the totals of the Journal, and of course, to one another. 



Dr. 



1,110 



150 



400 



50 



Trial Balance. 



Name of Account. 



Capital 



Bank ... 



Horse 



Stock... 



Plant ... 



Crops ... 



Dairy . . . 



James. . . 



Sydney Plough Co. 



Wages 



Rent ... 



Interest 



Cr. 

 £ s. d. 

 1,050 

 750 



£2.260 



£2.260 



It does not necessarily follow that, the Dr. and Cr. columns being equal, 

 the postings must be correct, inasmuch as it does not disclose when there 

 is an entry on the right side, but posted to the wrong account, or a posting 

 to the wrong side, with its corresponding entry also on the wrong side. 



The making up of a trial balance has so many distinct advantages that 

 it must never be dispensed with. Any error must be at once looked for^ 

 because, if allowed to remain, the balancing entry will also be wrong, and 

 it will be practically impossible to compile a correct balance-sheet and 

 profit and loss account. It is convenient to remember that if one side is 

 deficient by the same amount as the other side is in excess of the Journal 

 total, an entry of that amount has usually been posted to the wrong side. 



