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Sachin Jain

Sachin Jain (Querist)
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19 February 2013 TOTAL OF TRAIL BALANCE AND BALANCE SHEET SHOULD BE EQUAL OR NOT...

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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19 February 2013 Total of Trail Balance and Balance sheet shall not be equal.

OM SAI SRI SAI JAI JAI SAI

Sachin Jain

Sachin Jain (Querist)
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20 February 2013 I KNOW THIS POINT BUT I WANT TO CONCEPTUAL ANSWER.WHY THIS IS NOT POSSIBLE.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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20 February 2013 Because of so many reasons:

1) Trail balance doesn't consider adjustment entries like closing stock

2) Trail balance considers debit balances and credit balances separately for expenses and income but balance sheet consider only net profit or loss

3) Payables and receivables doesn't consider at the train balance

Main notable point for trail balance's and balance sheet's total doesn't same is balance sheet consider only net profit or loss but trail balance consider expenses and incomes separately i.e Debit and credit total is differ and excess to balance sheet total. Think logical and observe both train balance and balance sheet and what is the differences and changes to prepare of that both then you shall get the solution to your answer.

OM SAI SRI SAI JAI JAI SAI

Sachin Jain

Sachin Jain (Querist)
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21 February 2013 It means trail balance is prepared on cash basis and profit or loss account is prepared on mercantile basis... that why trail balance and balance sheet should not be equal... i am right or wrong Mr. expert

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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21 February 2013 Yes, your view is partly correct. But for your clear understanding please provide your mail id I will explain you with clear example and explanation. Because here not possible to give clear presentation of example.

OM SAI SRI SAI JAI JAI SAI

Sachin Jain

Sachin Jain (Querist)
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25 February 2013 okay... my email i.d is sachinjain03@yahoo.com

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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25 February 2013 I mailed to you please check it and confirm me your understanding or any doubts etc.... for any query always welcomes you.

OM SAI SRI SAI JAI JAI SAI

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Sachin Jain

Sachin Jain (Querist)
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25 February 2013 One more little doubt..
if closing stock show in trail balance.How is to be adjusted in trading account and balance sheet..

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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26 February 2013 If you want to show Closing stock in Trail balance then there is two ways of accounts either you can adjust such closing stock amount to the the opening stock by crediting the closing stock amount to opening stock account otherwise you can include it along with sales. In any case of above accounting at the time of preparation of balance sheet the value of closing stock only appears at the balance sheet and P&L a/c doesn't consider the closing stock because of it adjusted with opening stock or combained with sales.

OM SAI SRI SAI JAI JAI SAI

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