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To produce accounts from the double entry items there is an intermediate stage known as the trial balance. At this stage all the debit entries and credit entries are summed up for each account. The table below shows the trial balance based upon the double entry items which were documented in part 1 of the article.

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prepayment translations: การจ่ายล่วงหน้า. Learn more in the Cambridge English-Thai Dictionary.
Concept of Double Entry. 2 minutes of reading. Every transaction has two effects. For example, if someone transacts a purchase of a drink from a local store, he pays cash to the shopkeeper and in return, he gets a bottle of dink. This simple transaction has two effects from the perspective of both, the buyer as well as the seller.
Accruals and prepayments . Introduction . These are adjustments which need to be carried out before the financial statements can be produced. The adjustments are necessary as accounts are prepared in accordance with one of the fundamental accounting concepts: the accruals concept.
1 Double entry bookkeeping 1 2 Accounting for VAT and payroll 47 3 Capital and revenue expenditure 65 4 Depreciation 83 5 Disposals of capital assets 121 6 The extended trial balance - an introduction 159 7 Financial statements and ethical principles 163 8 Accounting for inventory 199 9 Irrecoverable and doubtful debts 223
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Close the account after moving the entry to the correct permanent account. For suspense account journal entries, open a suspense account in your general ledger. Enter the full amount in question. The format of suspense account entries will be either a credit or debit. Also, enter the same amount with an opposite entry in another account.
In the UK, this principle applies in theory when the final balancing allowance or balancing charge is calculated on an asset. However, in practice, most assets on which tax allowances are received are 'pooled' for the purpose of both the tax computation and the calculation of timing differences.

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