• Registered: 04/03/2016
  • Posts: 1

Topic: Problems in trial balance (on cash basis)

Hi everyone! First time poster here.

I have run into a problem with my trial balance. Let me elaborate. I was only provided a register with cash & bank payments and receipts. And I am preparing a trial balance in such a way that everything is viewed in the context of cash and bank, in which receipts and opening balances are recorded on the debit side of the trial balance, and payments and closing balances are recorded on the credit side of the trial balance. Now after I have punched all the data from that manual register into excel, my trial balance did balance, however, in the trial balance there are two accounts, namely petty cash paid and petty cash received, these two accounts should not be there in the trial since overall cash account is present in the trial balance. If I remove these two accounts from the trial balance then the trial balance does not balance anymore. What should I do in this case? Please note that the bank and cash balances are already being reported in the trial balance, and these balances do include the petty cash paid and petty cash received.

Regards.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,168

Re: Problems in trial balance (on cash basis)

If the petty cash paid and petty cash received have been incorporated into the cash and bank accounts, then they should be zero or at the very least equal to one another with sign reversal. Make a journal voucher moving the amounts in balance in each of the petty cash accounts to the cash account and then use the resultant trial balance.

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