I hate it when a trial balance is unbalanced

"Krieger (@FSKrieger22)" (Krieger22) 07/07/2015 at 13:15 • Filed to: None

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I need an auditor. !!!error: Indecipherable SUB-paragraph formatting!!! . Any help is greatly appreciated.

NoneOfYourBiz > Krieger (@FSKrieger22) 07/07/2015 at 13:37

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I used to do the accounting for a small business. I have no idea what’s going on here. Did you start with $600 more than you’re showing? Seems like there’s a data entry error. Formula is correct.

Mr. Ontop, No Strokes, No Smokes...Goes Fast. > Krieger (@FSKrieger22) 07/07/2015 at 13:49

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check for transpositions.

The Dummy Gummy > Krieger (@FSKrieger22) 07/07/2015 at 14:10

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ETA Readded bank balance. Nevermined

NoneOfYourBiz > Krieger (@FSKrieger22) 07/07/2015 at 14:12

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There’s your problem. “Sales returns” should be under “credits.” That’ll make the sides balance. (-$300 from the left, +$300 on the right)

RockThrillz89 > NoneOfYourBiz 07/07/2015 at 14:26

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A return of a sold item would be a Dr to sales (in this case, Dr to sales returns since that account is being used as a contra-revenue account) and a Cr either cash or A/P. Unless I’m missing what “sales returns” is being defined as.

RockThrillz89 > Krieger (@FSKrieger22) 07/07/2015 at 14:47

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You put debited sales returns and you debited sales. That Dr to sales returns should go to inventory and cost of goods sold as a Cr. The Dr to sales is correct.

I found it thanks to CJ pointing out the Dr to sales returns, then looking at the sales account.

NoneOfYourBiz > RockThrillz89 07/07/2015 at 16:58

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Ah, was looking at it the other way - as if the entity holding the balance sheet had returned something and received a credit, not as if a customer of theirs had made a return. I think the OP needs to clarify but that’s all I got.

EDIT - Ah, there we go! RockThrillz89 found it. :)

RockThrillz89 > NoneOfYourBiz 07/07/2015 at 17:07

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To be fair, the transactions are really poorly worded. There is another transaction that happened in the month where the company returned “goods” (I read goods to mean inventory).

I also think that Krieger needs to combine the Bank and Cash accounts, as well as add A/R and A/P accounts for all those credit sales and purchases. I did some quick t-charts and had outstanding A/R and A/P at the end of the month. I’m not sure how deep you went into it, but did you get non-zero balances too?