BUSS1030 Lecture Notes - Lecture 4: Perpetual Inventory, Trial Balance, The Ledger
18 Jul 2018
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Account, one which is useful to identify separately, but which offsets another account. Bad debts represent an expense which needs to be written off. The perpetual inventory approach is relatively easily handled using ledger accounts, though some modification to the format helps [refer to examples for clarification]. [unadjusted trial balance is before you have adjusted entries. Adjusted trial balance is when you have adjusted entries] A trial balance is a listing of all accounts in a ledger as a check to see whether they balance. The fact that the totals for each column agree provides some indication that we have not made bookkeeping errors. We cannot, however, have total confidence that there are no errors simply because the totals of a trial balance agree. Suppose, for example, that we paid rent for the month of . Nevertheless, a trial balance, where the totals agree, provides some assurance that the accounts have been correctly recorded.
