Forms of trial balance

Business Studies J.S.S 3 Second Term

WEEK 6

Forms of trial balance

Performance Objectives

Students should be able to:

    1. Identify the forms of trial balance.

    2. Draw the forms of trial balance.

Content

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. The following must be taken into consideration when preparing a trading account.

1. Opening Stock: The value of items or goods in the store at the beginning of an accounting period.

2. Closing Stock: The value of goods or items at the end of the accounting period.

3. Purchases: Goods owned by the business for resale…