Self-test On 30 June 2009, Final Trading Co. extracted a list of balances from their ledger.

Office expenses 11,880 Postage and stationery 3,900 Rent and rates 7,500 Insurance 1,095 Lighting and heating 1,548 Motor expenses 5,880 Salaries and wages 14,550 Sales 109,800 Purchases 61,950 Bank charges 2,418 Vans 10,500 Creditors 9,750 Debtors 20,430 Land and buildings 84,000 Stock 1 July 2008 24,060 Cash at bank 3,402 Drawings 18,834 Capital 152,397 You need to place these balances in a trial balance to check the accuracy of the ledger postings.

Remember the rules to determine if the balances are debits or credits.

We read about them in section 2.1. To recap, they are:

All assets are debits and liabilities are credits.

Expenses are debits and incomes are credits.

With the above in mind, you only need identify what each account heading represents and from that you should be able to prepare the trial balance.