COMPETENCY BASED LEARNING MATERIAL
ILOILO CITY LOGO
ILOILO PROVINCE LOGO
SECTOR
HEALTH, SOCIAL AND OTHER COMMUNITY
DEVELOPMENT SERVICES SECTOR
QUALIFICATION
BOOKKEEPING NC III
UNIT OF
COMPETENCY
PREPARE TRIAL BALANCE
MODULE TITLE
PREPARING TRIAL BALANCE
LEARN, EDUCATE, TRAIN, SERVE
ACADEME (L.E.T.S. PROAC), INC.
PROFESSIONAL
HOW TO USE THIS MODULE
Welcome to the Module in “Preparing Trial Balance”. This module contains
training materials and activities for you to complete.
The unit of competency Prepare Trial Balance contains knowledge, skills
and attitudes required for BOOKKEEPING NC III qualification.
You are required to go through a series of learning activities in order to
complete each of the learning outcomes of the module. In each learning outcome
there are Information Sheets, Task Sheets, and Activity Sheets. Follow these
activities on your own and answer the Self-Checks at the end of each section.
If you have questions, don’t hesitate to ask you teacher for assistance.
Recognition of Prior Learning (RPL)
You may already have some of the knowledge and skills covered in this
module because you have:
 been working for some time
 already have completed training in this area
If you can demonstrate to your trainer that you are competent in a
particular skill or skills, talk to him/her about having them formally recognized so
you don’t have to do the same training again. If you have a qualification or
Certificate of Competency from previous trainings show it to your trainer. If the
skills you acquired are still current and relevant to this module, they may become
part of the evidence you can present for Review of Previous Learning (RPL). If you
are not sure about the currency of your skills, discuss it with your trainer.
After completing this module, ask your teacher to assess your competency.
Result of your assessment will be recorded in your competency profile. All the
learning, activities are designed for you to complete at your own pace.
Inside this module you will find the activities for you to complete followed by
relevant information sheets for each learning outcome. Each learning outcome
may have more than one learning activity.
BOOKKEEPING NC III
Preparing Trial Balance
Date Developed:
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SUMMARY OF COMPETENCY-BASED LEARNING MATERIALS
List of Core Competencies
No.
Unit of Competency
Module Title
Code
1.
Journalize transactions
Journalizing transactions
HCS412301
2.
Post transactions
Posting of transactions
HCS412302
3.
Prepare trial balance
Preparing
balance
HCS412303
4.
Prepare financial reports
Preparing
reports
5.
Review internal control Reviewing the
system
Control System
BOOKKEEPING NC III
Preparing Trial Balance
the
the
Date Developed:
trial
financial HCS412304
Internal
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HCS412305
Revision # 00
Table of Contents
How to Use this Module ........................................................................................................................... 1
Summary of Competency Based Learning Material .................................................................................... 2
Table of Contents .................................................................................................................................... 3
Module Content ....................................................................................................................................... 4
Learning Outcome Summary ..................................................................................................................... 6
Learning Experiences ................................................................................................................................ 7
Information Sheet 3.1-1 ............................................................................................................................ 9
Trial Balance .................................................................................................................................................. 14
Self Check 3.1-1 ...................................................................................................................................... 15
Answer Key 3.1-1 .................................................................................................................................. 17
Task sheet 3.1-1 ..................................................................................................................................... 18
Suggested Answer to Task Sheet 3.1-11 .................................................................................................. 21
Performance Criteria Checklist ................................................................................................................ 22
Information sheet 3.1-2 .................................................................................................................... 23-25
Self Check 3.1-2 ...................................................................................................................................... 26
Suggested Answers to Self Check 3.1-2 ................................................................................................... 27
Self Check 3.1-2 .................................................................................................................................... 28
Sheet 3.1-2 ............................................................................................................................................ ………29
Suggested Answers to Task sheet 3.1-2
................................................................................................ 30
References ............................................................................................................................................ 31
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Preparing Trial Balance
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MODULE CONTENT
QUALIFICATION
Bookkeeping NC III
UNIT OF COMPETENCY
Prepare Trial Balance
MODULE TITLE
Preparing Trial Balance
INTRODUCTION:
This module covers the knowledge, skills and attitudes in preparing trial
balance for all types of business organizations.
NOMINAL DURATION:
16 HOURS
LEARNING OUTCOMES:
LO1. List account titles
LO2. Transfer balances from the ledger
LO3. Summarize trial balance
ASSESSMENT CRITERIA:
1.
2.
3.
4.
5.
6.
List asset, liability, and equity account titles in accordance with
Chart of Account.
List income and expense account titles in accordance with Chart
of Accounts.
Transfer asset, liability, and equity balances in accordance with
Chart of Accounts
Transfer income and expense balances in accordance with Chart
of Accounts
Total debits and credits with 100% accuracy
Extract Trial Balances with 100% accuracy.
Prerequisite: None
LEARNING OUTCOME 01
List account titles
CONTENTS:
1.1 Listing of Account Titles
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ASSESSMENT CRITERIA:

List asset, liability, and equity account titles in accordance with
Chart of Account.

List income and expense account titles in accordance with Chart
of Accounts.
CONDITION:
Trainees must be provided with the following:
1. Workplace Location : Bookkeeping NC III Training Laboratory
2. Tools, accessories & supplies
 Learning Packages
 Pencil
 Eraser
 Worksheet
 Paper
 Ledger
 Ruler
3. Equipment
 Laptop/Desktop
 LCD projector
4. Training Materials
 Competency Based Learning Manual (CBLM)
 Bookkeeping Manuals
ASSESSMENT METHODS:
 Written test
 Practical/performance test
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LEARNING OUTCOME SUMMARY
LEARNING OUTCOME #01
List account titles
CONTENTS:

Listing account titles
ASSESSMENT CRITERIA


Asset, liability, and equity account titles are listed in accordance with
Chart of Accounts
Income and expense account titles are listed in accordance with Chart of
Accounts
CONDITION:
Trainees must be provided with the following:
1. Workplace location: Bookkeeping NC III Training laboratory
2. Equipment
 Projector
 laptop
3. Training materials
 CBLM
 Manuals
 Calculator
 Paper
 Learning Materials
 Pencil
 Eraser
 Worksheet
 Ruler
EVALUATION METHOD:
 Written test
 Practical/performance test
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LEARNING EXPERIENCES
LEARNING OUTCOME #1: List Account Titles
Learning Activities
1. Read Information sheet 3.1-1 on
Procedures in Listing the Asset,
Liability and Equity Account Titles
according to the chart of accounts
2. Observe the trainer in
demonstrating procedure in listing
of account titles based on the chart
of accounts
3. Answer Self Check 3.1-1
Special Instructions
If you have some problem on the
content of the information sheet don’t
hesitate to approach your facilitator.
If you feel that you are knowledgeable
on the content of the information
sheet, you can now answer self-check
provided in the module.
If you have some problem on the
demonstration
don’t
hesitate
to
approach your facilitator.
If you feel that you are knowledgeable
on the demonstration proceed to
answer self check 3.1-1 and perform
task sheet 3.3-1.If not have some
don’t hesitate to approach your
facilitator.
Refer your
key 3.1-1
required to
not, read
again to
correctly.
answers to the answer
for self-check. You are
get all answers correct. If
the information sheets
answer all questions
4. Perform task sheet 3.1-1 on listing
of Asset, Liability and Equity
Account Titles according to the
chart of accounts
Compare
your
work
to
the
Performance Criteria Checklist 3.1-1.
If you got 100% correct answer in this
task, you can now move to the next
activity. If not review the operation
sheet and go over the task again.
5. View video presentation on
procedure in Procedures in Listing
the Asset, Liability and Equity
Account Titles according to the
chart of accounts
If you feel that you are knowledgeable
on the presentation, you can now
answer oral questioning.
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6. Read Information sheet 3.1-2 on
Procedures in Listing the Income
and expense account titles in
accordance with Chart of
Accounts.
If you have some problem on the
content of the information sheet don’t
hesitate to approach your facilitator.
If you feel that you are knowledgeable
on the content of the information
sheet, you can now answer self-check
provided in the module.
7. Answer Self-check No. 3.1-2
Refer your answers to the answer key
3.1-2 for self-check. You are required
to get all answers correct. If not, read
the information sheets again to
answer all questions correctly
8. Answer oral question
See that you got all answer correctly
before you could proceed to the next
activity.
9. Observe the trainer in
demonstrating procedure in listing
of account titles based on the chart
of accounts
If you have some problem on the
demonstration
don’t
hesitate
to
approach your facilitator.
10. Perform task sheet 3.1-2 on
listing of Asset, Liability and Equity
Account Titles according to the
chart of accounts
Compare
your
work
to
the
Performance Criteria Checklist 3.1-2.
If you got 100% correct answer in this
task, you can now move to the next
activity. If not review the operation
sheet and go over the task again.
If you feel that you are knowledgeable
on the demonstration perform task
sheet 3.3-1a.If not have some don’t
hesitate to approach your facilitator.
Congratulations! You are done with the activities of LO1 and is now ready for
the institutional assessment.
BOOKKEEPING NC III
Preparing Trial Balance
Date Developed:
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INFORMATION SHEET 3.1-1
Procedure in listing of Asset, liability, and equity account in accordance with
Chart of Accounts
Learning Objectives:
After reading this INFORMATION SHEET, YOU MUST be able to execute
correctly the procedure in Listing the Asset, Liability and Equity Account Titles
according to the Chart of Accounts
Introduction
A trial balance is a list of accounts and their balances at a given time.
Customarily, companies prepare a trial balance at the end of an accounting
period. They list accounts in the order in which they appear in the ledger. Debit
balances appear in the left column and credit balances in the right column.
The trial balance proves the mathematical equality of debits and credits after
posting. Under the double-entry system, this equality occurs when the sum of the
credit and the debit account balances. A trial balance may also uncover errors in
journalizing and posting. In addition, a trial balance is useful in the preparation of
financial statements.
The steps for preparing a trial balance are:
1.
List account titles
2.
Transfer balances from the ledger
3.
Summarize trial balance
In this information sheet, we are going to discuss Step #1 or Learning Outcome 01
with the following assessment criteria:
1.
Asset, liability, and equity account titles are listed in accordance with Chart
of Account.
2.
Income and expense account titles are listed in accordance with Chart of
Accounts.
If you can remember the previous Units of Competencies and the respective
Module Titles which are:
As a review and for ease of reference, below is the definition and
characteristics of the different Balance Sheet Accounts:
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Asset
Are things, properties or resources of value owned and controlled by the business
entity. They have value because they can be used or exchanged to produce the
services or products of the business. They possess service potential or utility to the
owner they can be measured and expressed in money terms.
Liability
Are the present obligations or debts by the business arising from transactions on
account or are premises to pay in the future
Capital/Equity
Represents the residual interest of the owners in the assets of the business after
deducting the equity if the creditors or the liabilities. It is also called net worth ,
proprietorship or residual equity.
In summary:
Account Name
Increases
Decreases
Normal Balance
Asset
Debit
Credit
Debit
Liability
Credit
Debit
Credit
Owner’s Equity
Credit
Debit
Credit
Refer to the ‘T’ Accounts of the company “TLC Wedding Services’. The balance of
each account has been determined.
Illustration 3.1-1a TLC Wedding Services T Accounts.
Cash
22,000
Office Equipment
60,000
Accounts Receivable
12,000
Notes Payable
210,000
Supplies
Accounts Payable
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53,000
18,000
Prepaid Rent
8,000
Utilities Payable
1,400
Prepaid Insurance
14,000
Unearned Revenues
10,000
Service Vehicle
420,000
Consulting Revenues
62,400
Furniture & Fixtures
4,400
Notes Receivable
13,800
Torres, Withdrawals
14,000
Torres, Capital
250,000
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Following is the Chart of Account:
Illustration 3.1-1b TLC Wedding Services Chart of Accounts:
TLC Wedding Services
Chart of Accounts
Balance Sheet Accounts
Assets
110 Cash
120 Accounts Receivable
125 Notes Receivable
130 Supplies
140 Prepaid Rent
150 Prepaid Insurance
160 Service Vehicle
165 Accumulated Depreciation
170 Office Equipment
175 Accumulated Depreciation
180 Furnitures & Fixtures
Liabilities
210 Notes Payable
220 Accounts Payable
230 Salaries Payable
240 Utilities Payable
250 Interest Payable
260 Unearned Revenues
Owner's Equity
310 Torres, Capital
320 Torres, Withdrawal
330 Income Summary
410
420
510
520
530
540
550
560
570
580
590
Income Statement Accounts
Income
Consultng Reveneus
Referral Revenues
Expenses
Salaries Expense
Supplies Expense
Rent Expense
Insurance Expense
Utilities Expense
Depreciation Expense - Service Vehicle
Depreciation Expense - Office Equipment
Miscellaneous Expense
Interest Expense
Learning Objective 01 focuses on the Balance Sheet accounts.
Proceed to list the account titles as it appears in the Chart of
Accounts, with their respective balances. Note that there is the
account Consulting Revenue with Credit Balance of P62,400.00. Take
note of this as this is shall be included in the Information Sheet 3.1-2
under the Assessment Criteria Listing of Income and Expense
Accounts in accordance to the Chart of Accounts.
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In reference to Illustration 3.1-1c, the balance of the accounts are
posted across the account titles. The Debit balance under the Debit
Column (Left Side), and the Credit Balance under the Credit Column
(Right Side). To check that the accounts are listed correctly and
completely, the totals of Debit and Credit must be equal, under the
principle of double-entry accounting system.
The trial balance is a control device that helps minimize accounting
errors. When the totals are equal, the trial balance is in balance. The
equality provides an interim proof of the accuracy of the records but it
does not signify the absence of errors.
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Illustration 3.1-1c TLC Wedding Services Trial Balance
Trial Balance
TLC Wedding Services
Balance Sheet Accounts
Assets
110
120
125
130
140
150
160
165
170
175
180
210
220
230
240
250
260
310
320
330
410
420
510
520
530
540
550
560
570
580
590
Debit
Credit
Cash
22,200
Accounts Receivable
12,000
Notes Receivable
13,800
Supplies
18,000
Prepaid Rent
8,000
Prepaid Insurance
14,400
Service Vehicle
420,000
Accumulated Depreciation
Office Equipment
60,000
Accumulated Depreciation
Furnitures & Fixtures
4,400
Liabilities
Notes Payable
210,000
Accounts Payable
53,000
Salaries Payable
Utilities Payable
1,400
Interest Payable
Unearned Revenues
10,000
Owner's Equity
Torres, Capital
250,000
Torres, Withdrawal
14,000
Income Summary
Income Statement Accounts
Income
Consultng Reveneus
62,400
Referral Revenues
Expenses
Salaries Expense
Supplies Expense
Rent Expense
Insurance Expense
Utilities Expense
Depreciation Expense - Service Vehicle
Depreciation Expense - Office Equipment
Miscellaneous Expense
Interest Expense
586,800 586,800
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SELF- CHECK 3.1-1
Instruction: Identify what is being ask in the statement. Encircle your answer.
1.
Which of the following classification of accounts has/have a normal credit
balance?
a.
Withdrawal
b.
Revenues
c.
Revenue and liabilities
d.
All of these
2.
A purchase is recognized in the accounting records when
a.
title transfer from the seller to the buyer
b.
payment is made for the item purchased
c.
the purchase requisition is sent to the purchasing department
d.
the buyer receives the seller’s bill
3.
The primary purpose of the trial balance is to test the
a.
equality of debit and credit entries in the journal
b.
recording of transactions
c.
equality of debit and credit balances in the ledger
d.
analysis of transactions
4.
The general journal does not have a column titled
a.
Date
b.
Description
c.
Posting Reference
d.
Account Balance
5.
To find an explanation for a transaction, one should look at the
a.
chart of accounts
b.
description
c.
Posting Reference
d.
Account Balance
6.
Which of the following errors will cause a trial balance to be out of balance?
a.
a journal entry was accidentally posted twice
b.
A credit was posted to an account as a debit
c.
The bookkeeper forgot to journalize a transaction
d.
The bookkeeper forgot to post a journal entry to the ledger
7.
A P800 credit item is accidentally posted as a debt. The trial balance column
totals will differ by
a.
P0
b.
P400.00
c.
P800.00
d.
P1,600.00
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8.
Which of the following entries records the withdrawal of cash for personal
use by Catherine Viesca, the owner of a business?
a.
Debit Cash and credit Viesca, Withdrawals
b.
Debit Cash and Credit Salary Expense
c.
Debit Salary Expense and credit Cash
d.
Debit Viesca, Withrawals
9. The trial balance will not expose which of the following problems?
a.
Recording half an entry
b.
leaving out an entire entry
c.
Recording both halves of an entry on the same side
d.
Recording half an entry and leaving out an entire entry
e.
Recording half an entry and recording both halves of an entry on the
same side
10. Which of the following describes the classification and normal balance of
Doringer Cabrera, Capital?
a.
Asset, debit
b.
Revenue, credit
c.
Owner’s Equity, debit
d.
Expense, debit
e.
None of these
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ANSWER KEY 3.1-1
1. d
2. a
3. c
4. c
5. c
6. b
7. a
8. a
9. c
10. a
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Preparing Trial Balance
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TASK SHEET 3.1-1
Title: List Asset, Liability and Equity account titles in accordance with
Chart of Accounts
Performance Objective:
Given the necessary tool, materials, and equipment you need to
List Asset, Liability and Equity account titles in accordance with Chart
of Accounts for 1.5 hours.
Duration
1.5 hours
Supplies/Materials
 Journals

Pencil/Ballpen
Eraser
Tools/Equipment

:
Ledgers
:
Calculator
Assessment Method :

Performance Test
Steps and Processes
1. Refer to the T-Accounts and the Chart of Accounts provided
2. From the given information in #1, List the Asset, Liability and
Equity account titles in accordance with the Chart of Accounts
3. Once finished, check your answers against suggested answers. If
you don’t get the perfect answer, perform the task sheet all over
until you get the correct answers.
4. Once you get the correct answers, you are ready to move to the next
step.
5. Return tools, materials and equipment.
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Preparing Trial Balance
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Refer to the T Accounts Below
Cash
Accounts Payable
8,000
603,000
Accounts Receivable
20,000
Employee Cash Advance
30,000
Notes Payable
60,000
Food and Beverage Inventory
10,000
Furnitures & Fixtures
70,000
Office Supplies
5,000
Prepaid Rent
Office Equipment
150,000
Oscares, Capital
800,000
Prepaid Advertising
4,000
Unearned Revenue
80,000
Vehicle
200,000
Notes Receivable
25,000
Sales Revenue
180,000
Marketing Materials
6,000
Oscares, Drawing
5,000
Use the following Chart of Accounts:
Balance Sheet Accounts
Assets
2001
2010
2019
2028
2037
2046
2055
2064
2073
2082
2091
5110
5120
Cash
Accounts Receivable
Notes Receivable
Food and Beverage Inventory
Office Supplies
Employee Cash Advances
Marketing Materials
Prepaid Advertising
Office Equipment
Vehicle
Furnitures & Fixtures
Liabilities
Notes Payable
Accounts Payable
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5130
5140
5150
5160
6010
6020
6030
7010
7020
8010
8020
8030
8040
8050
8060
8070
8080
8090
Salaries Payable
Utilities Payable
Interest Payable
Unearned Revenues
Owner's Equity
Oscares, Capitl
Oscares, Drawing
Income Summary
Income Statement Accounts
Income
Consultng Reveneus
Sales Revenue
Expenses
Salaries Expense
Supplies Expense
Rent Expense
Insurance Expense
Utilities Expense
Depreciation Expense - Service Vehicle
Depreciation Expense - Office Equipment
Miscellaneous Expense
Interest Expense
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Suggested Answer to Task Sheet 3.1-1
Balance Sheet Accounts
Assets
2001
2010
2019
2028
2037
2046
2055
2064
2073
2082
2091
5110
5120
5130
5140
5150
5160
6010
6020
6030
7010
7020
8010
8020
8030
8040
8050
8060
8070
8080
8090
Cash
Accounts Receivable
Notes Receivable
Food and Beverage Inventory
Office Supplies
Employee Cash Advances
Marketing Materials
Prepaid Advertising
Office Equipment
Vehicle
Furnitures & Fixtures
Liabilities
Notes Payable
Accounts Payable
Salaries Payable
Utilities Payable
Interest Payable
Unearned Revenues
Owner's Equity
Oscares, Capitl
Oscares, Drawing
Income Summary
Income Statement Accounts
Income
Consultng Reveneus
Sales Revenue
Expenses
Salaries Expense
Supplies Expense
Rent Expense
Insurance Expense
Utilities Expense
Depreciation Expense - Service Vehicle
Depreciation Expense - Office Equipment
Miscellaneous Expense
Interest Expense
Debit
Credit
603,000
20,000
25,000
10,000
5,000
30,000
6,000
4,000
150,000
200,000
70,000
60,000
8,000
80,000
800,000
5,000
180,000
1,128,000
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Preparing Trial Balance
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PERFORMANCE CRITERIA CHECKLIST
3.1-1
Did I?
List the Asset, Liability and equity account titles in accordance
with the Chart of Accounts
List the Income and Expense account titles in accordance with
the Chart of Accounts
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Preparing Trial Balance
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INFORMATION SHEET 3.1-2
Procedure in listing of Income and Expense account in accordance with Chart of
Accounts
Learning Objectives:
After reading this INFORMATION SHEET, YOU MUST be able to execute
correctly the procedure in Listing Income and Expense Account Titles in
accordance to the Chart of Accounts
Introduction
The procedure in Listing the Asset, Liability and Equity Account Titles
according to the Chart of Accounts discussed in Information Sheet 3.1-1 is very
similar to the Listing Income and Expense Account Titles in accordance to the
Chart of Accounts which is the topic of Information Sheet 3.1-2.
As you may recall, the definition of a Trial Balance: It is a list of accounts
and their balances at a given time. Customarily, companies prepare a trial balance
at the end of an accounting period. They list accounts in the order in which they
appear in the ledger. Debit balances appear in the left column and credit balances
in the right column.
The trial balance proves the mathematical equality of debits and credits
after posting. Under the double-entry system, this equality occurs when the sum
of the credit and the debit account balances. A trial balance may also uncover
errors in journalizing and posting. In addition, a trial balance is useful in the
preparation of financial statements.
The steps for preparing a trial balance are:
1.
List account titles
2.
Transfer balances from the ledger
3.
Summarize trial balance
We are going to discuss Step #1 or Learning Outcome 01 with the following
assessment criteria:
1.
Asset, liability, and equity account titles are listed in accordance with Chart
of Account.
2.
Income and expense account titles are listed in accordance with Chart of
Accounts.
As a review and for ease of reference, below is the definition and
characteristics of the different Income Statement Accounts:
BOOKKEEPING NC III
Preparing Trial Balance
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Revision # 00
Expense
An expense is the cost of operations that a company incurs to generate
revenue.
Understanding Expense
One of the main goals of company management teams is to maximize profits. This
is achieved by boosting revenues while keeping expenses in check. Slashing costs
can help companies to make even more money from sales. However, if expenses
are cut too much it could also have a detrimental effect. For example, paying less
on advertising reduces costs but also lowers the company’s visibility and ability to
reach out to potential customers.
How Expenses Are Recorded
Companies break down their revenues and expenses in their income statements.
Accountants record expenses through one of two accounting methods: cash basis
or accrual basis. Under cash basis accounting, expenses are recorded when they
are paid. In contrast, under the accrual method, expenses are recorded when they
are incurred.
For example, if a business owner schedules a carpet cleaner to clean the carpets
in the office, a company using cash basis records the expense when it pays the
invoice. Under the accrual method, the business accountant would record the
carpet cleaning expense when the company receives the service. Expenses are
generally recorded on an accrual basis, ensuring that they match up with the
revenues reported in accounting periods.
Different Types of Expenses
There are two main categories of business expenses in accounting:


Operating expenses: Expenses related to the company’s main activities,
such as the cost of goods sold, administrative fees and rent.
Non-operating expenses: Expenses not directly related to the business' core
operations. Common examples include interest charges and other costs
associated with borrowing money.
BOOKKEEPING NC III
Preparing Trial Balance
Date Developed:
Document No.
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Revision # 00
Examples of compensation-related operating expenses

Compensation and related payroll tax expenses for non-production employees

Sales commissions (though this could be interpreted as a variable cost that is therefore part of
the cost of goods sold)

Benefits for non-production employees

Pension plan contributions for non-production employees
Examples of office-related operating expenses

Accounting expenditures

Depreciation of fixed assets assigned to non-production areas

Insurance costs

Legal fees

Office supplies

Property taxes

Rent costs for non-production facilities

Repair costs for non-production facilities

Utility costs
Examples of sales and marketing-related operating expenses

Advertising costs

Direct mailing costs

Entertainment costs

Sales material costs (such as brochures)

Travel costs
BOOKKEEPING NC III
Preparing Trial Balance
Date Developed:
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Issued by:
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Self Check 3.1-2
Instruction: Choose the best letter of the best answer.
1. The following are in the income statement, except the following:
a. Expenses
b. Revenue
c. Net income
d. Accounts Payable
2. The balance sheet accounts are the following except:
a. Cash
b. Accounts Receivable
c. Sales
d. Luzarita, Capital
3. When an entity receives cash for services rendered,
a. An asset is decreased
b. A liability is increased
c. Owner’s Equity is Increased
d. Revenue is increased
4. When an entity receives cash for services rendered,
a. The owner’s equity is decreased
b. The Liability is increased
c. The asset is increased
d. The asset is decreased
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Preparing Trial Balance
Date Developed:
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Suggested Answers to Self Check 3.1-2
1. d
2. c
3. a
4. c
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Preparing Trial Balance
Date Developed:
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Self Check 3.1-2
Instruction: Write T if the statement is True and F if the statement is False.
1. What are the two Assessment Criteria under the Learning Objective: List the
Account Titles?
2. What are the major account groups and which financial statement can you
find these?
3. What are the range of variables for the accounts Assets, Liability and Equity
account titles. Give one example for each.
4. What are the range of variables for the accounts Income and Expense
account titles. Give one example for each.
Suggested Answers to Oral Questioning
1. The assessment criteria for the Learning Objective: List Account Titles are:
a. Asset, liability, and equity account titles are listed in accordance with
Chart of Account.
b. Income and expense account titles are listed in accordance with Chart
of Accounts.
2. The Account titles are generally grouped into:
Account Title
Asset
Liability
Owner’s Equity
Expense
Income/Revenue
Normal Balance
Debit
Credit
Credit
Debit
Credit
3.
Variable
Asset
Liability
Equity
Range
Cash
Loans Payable
Barbo, Capital
4.
Variable
Income
Expense
Range
Rent Income
Rent Expense
BOOKKEEPING NC III
Preparing Trial Balance
Date Developed:
Financial Statement
Balance Sheet
Balance Sheet
Balance Sheet
Income Statement
Income Statement
Document No.
Issued by:
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Revision # 00
Sheet 3.1-2
List the Income and Expense Account in accordance to the Chart of Accounts.
Use the following ‘T’ Accounts, the balances have been determined.
Salaries Expense
30,000
Rent Expense
25,000
Interest Expense
4,000
Utilities Expense
6,000
Cash
65,000
Use the following Chart of Accounts
2001
2010
2019
2028
2037
2046
2055
2064
2073
2082
2091
5110
5120
5130
5140
5150
5160
6010
6020
6030
Balance Sheet Accounts
Assets
Cash
Accounts Receivable
Notes Receivable
Food and Beverage Inventory
Office Supplies
Employee Cash Advances
Marketing Materials
Prepaid Advertising
Office Equipment
Vehicle
Furnitures & Fixtures
Liabilities
Notes Payable
Accounts Payable
Salaries Payable
Utilities Payable
Interest Payable
Unearned Revenues
Owner's Equity
Oscares, Capitl
Oscares, Drawing
Income Summary
BOOKKEEPING NC III
Preparing Trial Balance
7010
7020
8010
8020
8030
8040
8050
8060
8070
8080
8090
Income Statement Accounts
Income
Consultng Reveneus
Sales Revenue
Expenses
Salaries Expense
Supplies Expense
Rent Expense
Insurance Expense
Utilities Expense
Depreciation Expense - Service Vehicle
Depreciation Expense - Office Equipment
Miscellaneous Expense
Interest Expense
Date Developed:
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Revision # 00
Suggested Answer to Task Sheet 3.1-2
Balance Sheet Accounts
Assets
2001
2010
2082
2091
5110
5120
5130
5140
5150
5160
6010
6020
6030
7010
7020
Debit
Credit
Cash
Accounts Receivable
Vehicle
Furnitures & Fixtures
Liabilities
Notes Payable
Accounts Payable
Salaries Payable
Utilities Payable
Interest Payable
Unearned Revenues
Owner's Equity
Oscares, Capitl
Oscares, Drawing
Income Summary
Income Statement Accounts
Income
Consultng Reveneus
Sales Revenue
Expenses
65,000
8010
8020
Salaries Expense
Supplies Expense
30,000
8030
8040
8050
8060
8070
8080
8090
Rent Expense
Insurance Expense
Utilities Expense
Depreciation Expense - Service Vehicle
Depreciation Expense - Office Equipment
Miscellaneous Expense
Interest Expense
25,000
6,000
4,000
65,000
BOOKKEEPING NC III
Preparing Trial Balance
Date Developed:
65,000
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Revision # 00
REFERENCES
1. Cabanilla, E. A Manual in Accounting I
2. Ballada, W. Basic Accounting. 20th Ed., 2015
BOOKKEEPING NC III
Preparing Trial Balance
Date Developed:
Document No.
Issued by:
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Developed by:
Patricia A. Tamayo
Revision # 00