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Does a trial balance indicates whether the right amounts were posted to the correct general ledger accounts?
A trial balance does not guarantee that the right amounts were posted to the correct general ledger accounts; it simply ensures that the total debits equal the total credits. While a balanced trial balance indicates that the ledger is mathematically correct, it does not detect errors such as posting to the wrong account or omitting transactions. Additional procedures, such as reviewing account entries and reconciling accounts, are necessary to verify the accuracy of postings.
What does a credit balance in the purchase ledger control account represent?
Indicates monies owed to suppliers.
Negative collected balance?
Negative Collected Balance = Ledger Balance - Float, given Float > Ledger Balance.
Why do we have credit balance on the sales ledger control account?
A credit balance on the sales ledger control account typically indicates that a business has overpaid its customers or that there are unallocated payments or credits on the account. This can occur due to reasons such as customer returns, discounts applied, or prepayments made by customers. It may also suggest that the business needs to review its accounts receivable for any discrepancies or errors. Proper management of the sales ledger ensures accurate tracking of customer balances and financial health.
Can you withdraw ledger balance?
No till the time it get's converted into account balance and usually ledger balance get converted into account balance with in one day
Does a trial balance indicates whether the right amounts were posted to the correct general ledger accounts?
A trial balance does not guarantee that the right amounts were posted to the correct general ledger accounts; it simply ensures that the total debits equal the total credits. While a balanced trial balance indicates that the ledger is mathematically correct, it does not detect errors such as posting to the wrong account or omitting transactions. Additional procedures, such as reviewing account entries and reconciling accounts, are necessary to verify the accuracy of postings.
What does a credit balance in the purchase ledger control account represent?
Indicates monies owed to suppliers.
What is Rectification of errors?
Rectification of error is a sum in commerce.In this sum we rectified the errors in preparation of journal,ledger and trial balance.
Negative collected balance?
Negative Collected Balance = Ledger Balance - Float, given Float > Ledger Balance.
What is the trail balance?
If you are referring to a Trial Balance in Accounting, the Trial Balance is a list of nominal ledger (general ledger) accounts contained in the Ledger of a Business.
Why do we have credit balance on the sales ledger control account?
A credit balance on the sales ledger control account typically indicates that a business has overpaid its customers or that there are unallocated payments or credits on the account. This can occur due to reasons such as customer returns, discounts applied, or prepayments made by customers. It may also suggest that the business needs to review its accounts receivable for any discrepancies or errors. Proper management of the sales ledger ensures accurate tracking of customer balances and financial health.
Can you withdraw ledger balance?
No till the time it get's converted into account balance and usually ledger balance get converted into account balance with in one day
What is trial balace?
A trial balance is a list of all the nominal ledger (general ledger) accounts contained in the ledger of a business. This list will contain the name of the nominal ledger account and the value of that nominal ledger account. The value of the nominal ledger will hold either a debit balance value or a credit value balance. The debit balance values will be listed in the debit column of the trial balance and the credit value balance will be listed in the credit column. The profit and loss statement and balance sheet and other financial reports can then be produced using the ledger accounts listed on the trial balance...cj pulgar
To increase the balance in an accounts payable ledger?
To increase the balance in an accounts payable ledger you credit the account.
How entries are posted from general ledger to trial balance?
Extract of head of account wise debit balance or credit balance from the general ledger has to be posted in the trial balance.
What are the Errors that effect a trial balance?
Errors of Omission Errors of Commission Reversal of Entries Errors of Principle Errors of Original Entry Compensating Error these errors can be fount by a trial balance Wrong Casting Posting to the Wrong Side Posting Wrong Amounts Double Posting in a Single Account Errors of Totalling and Balancing of Accounts in the Ledger
How is subsidiary ledger different to the general ledger?
A subsidiary ledger is a group of similar accounts whose combined balances equal the balance in a specific general ledger account. The general ledger account that summarizes a subsidiary ledger's account balances is called a control account or master account. For example, an accounts receivable subsidiary ledger (customers' subsidiary ledger) includes a separate account for each customer who makes credit purchases. The combined balance of every account in this subsidiary ledger equals the balance of accounts receivable in the general ledger. Posting a debit or credit to a subsidiary ledger account and also to a general ledger control account does not violate the rule that total debit and credit entries must balance because subsidiary ledger accounts are not part of the general ledger; they are supplemental accounts that provide the detail to support the balance in a control account.
