Hey there! Sign in to join this conversationNew here? Join for free
    • Thread Starter
    Offline

    1
    ReputationRep:
    The trial balance is a list of balances of accounts in the nominal ledger.
    When you have a credit transaction. e.g sell goods on credit to a customer, in context to the ledgers you would open the customer's a/c in the sale ledger and post the amount and for the nominal ledger, post the amount in the sales a/c. This is where my confusion is- there's is no trade receivable a/c in the nominal ledger so why do i see trade receivable balances (and trade payable's) in the trial balance?

    NOTE: i've missed debit and credit entries- I just want to know why the trade receivables/payables balances appear on the trial balance if there are none of these a/cs in the nominal ledger (or if there are, why?).

    Thanks.
    Offline

    2
    ReputationRep:
    (Original post by newfanta123)
    The trial balance is a list of balances of accounts in the nominal ledger.
    When you have a credit transaction. e.g sell goods on credit to a customer, in context to the ledgers you would open the customer's a/c in the sale ledger and post the amount and for the nominal ledger, post the amount in the sales a/c. This is where my confusion is- there's is no trade receivable a/c in the nominal ledger so why do i see trade receivable balances (and trade payable's) in the trial balance?

    NOTE: i've missed debit and credit entries- I just want to know why the trade receivables/payables balances appear on the trial balance if there are none of these a/cs in the nominal ledger (or if there are, why?).

    Thanks.
    I'm also studying accounting and have the exam on tuesday and I had the same problem as you but what you need to know is that those customers A/C's are within the trade receivables ledger therefore the customers a/cs going onto trade receivables and will appear on the trial balance.
    Hope this helped.
 
 
 
Poll
Do you agree with the PM's proposal to cut tuition fees for some courses?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.