Extracting from the trial balance

Question 1

What is the golden rule when it comes to the trial balance

Answer 1

Only input each individual bit of info ONCE

DO NOT do double entries for the trial balance figures

Question 2

Where would we post 2% Loan Notes?

Answer 2

. Non-current liabilities (SoFP)

Question 3

Where would we post Administration costs?

Answer 3

. Admin Expenses
(P&L and OCI)

Question 4

Where would we post Cash and bank balances?

Answer 4

. Current Assets
(SoFP)

Question 5

Where would we post Cost of Sales?

Answer 5

. Cost of Sales
(P&L and OCI)

Question 6

Where would we post Dividend Income?

Answer 6

. Other Income
(P&L and OCI)

Question 7

Where would we post Dividend Paid?

Answer 7

. Retained Earnings
(SoFP)

Dividend paid would be a minus (-) figure in the retained earnings

Question 8

Where would we post Income Tax?

Answer 8

. Tax Expense
(P&L and OCI)

Question 9

Where would we post Inventory at 31 Dec 2024?

Answer 9

Inventory
(Current Assets - SoFP)

Remember that this is the ‘Closing Inventory’!!

Question 10

Where would we post Investment in Equity Shares?

Answer 10

Non-current assets
(SoFP)

Question 11

Where would we post Lease Liability at 1 Jan 2024

Answer 11

. Non-current Liabilities
(SOFP)

Question 12

Where would we post Lease Payment?

Answer 12

This would reduce Lease Liability
(Non-current liabilities, SoFP)

Question 13

Where would we post Loan notes interest paid?

Answer 13

This would reduce the loan notes amount
(Non-current liabilities)

Question 14

Where would we post Plant and Equipment?

Answer 14

. Non-current Assets
(SoFP)

Question 15

Where would we post Delivery Vehicles?

Answer 15

. Non-current Assets
(SoFP)

Question 16

Where would we post accumulated depreciation of Plant and Equipment and/or Delivery Vehicles?

Answer 16

. They would reduce the amount of the Plant and Equipment or the delivery vehicles
(SoFP)

Question 17

Where would we post Property - revalued amount at 1 Jan 2024?

Answer 17

. Non-current Assets
(SoFP)

Question 18

Where would we post Retained Earnings at 1 Jan 2024?

Answer 18

. Retained Earnings
(Equity section in SoFP)

Question 19

Where would we post Revaluation reserve at 1 Jan 2024?

Answer 19

. Revaluation reserve
(Equity section of SoFP)

Question 20

Where would we post Revenue?

Answer 20

. Revenue
(First line of P&L and OCI)

Question 21

Where would we post Right-of-use-asset - at cost?

Answer 21

. Non-current Assets
(SoFP)

Question 22

Where would we post Selling and Distribution Costs?

Answer 22

. Selling & Distribution Costs
(P&L and OCI)

Question 23

Where would we post Share Capital - £0.50 ordinary shares?

Answer 23

. Share Capital
(Equity section of SoFP)

Question 24

Where would we post Share Premium?

Answer 24

. Share Premium
(Equity section of SoFP)

Question 25

Where would we post **Trade Payables**?

Answer 25

. Current Liabilities section (SoFP)

Question 26

Where would we post **Trade Receivables**?

Answer 26

. Current Assets section (SoFP)

Question 27

Where would we post **Deferred tax balances at 1 Jan 2024**?

Answer 27

If it is DR: Post as a Deferred tax asset (Non-Current Assets) If it is CR: Post as a Deferred tax liability (Non-Current Liabilities)