Kalp Accounting Learning Articles

What is Trial Balance and how is it prepared ? A Trial Balance is a summarized statement/list of Closing Balances of all the Ledger Accounts,which is prepared mainly in the aim to draw Manufacturing,Trading,Profit & Loss Account/Income & Expenditure Account and Balance Sheet etc. Trial Balance is prepared after Balancing all the Ledger Accounts at the end of a particular period or date. Trial Balance follows the Rules of Double Entry System of Book-keeping. Hence,the Debit total amount and Credit total amount should be equal. If the Debit total amount and Credit total amount doesn't match,one should re-verify and try to rectify the errors. Sample format of Trial Balance. A Trial Balance mainly consists of five columns. Serial Number(Sl. No.) : In this column serial number of the Ledger Accounts are written. One can write "Sl.No" in place of Serial Number for consuming low space and time. Ledger Account/Head of Account : Name of the Ledger Accounts are written in

Meaning of Credit Sale: Credit Sale means,Goods/Materials are sold,but Cash/Bank(Cheque/Demand Draft/NEFT/RTGS/IMPS or any other payment mode linked to Bank Account etc.) is received on later date from the Debtor against that supply of goods. When Goods are sold on Credit basis and GST is charged. The Debit Ledger Account is: Sundry Debtors A/c(Some Accountants/people say Party A/c,Purchaser A/c,Buyer A/c,Receivable A/c). and the Credit Ledger Accounts are:  Sales A/c GST A/c Journal Entry on Credit Sale of Trading Goods when Indirect Tax like GST/VAT is charged and eligible to claim ITC(Input Tax Credit). Let's discuss,on a Journal Entry in the Books of M/s.RS Food Products. Goods sold to M/s.Trupti Enterprises for ₹48,590/- and charged GST@18% on dt.15/04/2020 as per Tax Invoice No-185. In the above Journal Entry the Debit Account is mentioned as 'Sundry Debtors A/c'. But practically one have to write or maintain Ledger Account in the name of Sundry Debtor/Purchaser/Bu