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RICHARD D.
RICHARD D.
Maroubra, NSW
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in a trial balance for end of year, do I show the credit card opening balance or the amount spent on the credit card for the year?

6 years ago

Responses

Hi Richard

Its the balance that needs to be input as the trial balance is as the name suggests a balance as a particular date.

Hi Richard, the trial balance at a specified date needs to report whatever credit card balance is on that date.

for example, lets say you are reporting for the 2016-17 financial year, and there is $500 owing on the credit card on 1/7/16.

then after all the trading income and expenses for the year are taken up, the credit card has $875 owing on 30 June 2017,

the trial balance will show a credit balance of $875 as at 30 June 2017

the trial balance will show a credit balance of $500 as at 1 July 2016.

but it will never show how much you spent on the credit card: it just reports the amount owing on a particular date.

hope this helps
bc

6 years ago

Brendan
Many thanks , sorry , but its hard for small businesses to understand the complexity of accounting, thanks again

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