Hi,

Just wondering been having some problems with my Balance Sheet balancing, I was wondering if the Trial Balance balances, does that mean that the balance sheet will balance? (given that I do everything correctly??)

Also just a quick question while I'm asking, regarding depreciation in T-Accounts, I have worked out the depreciation charge for one month as I'm only doing the T-Accounts for one month. In my mind I should Debit the items T-Account example Motorbike. And Credit the Depreciation T-Account, is this correct?

Thanks in advance.

CaptainForest

Yes, that is exactly what it means.


You would Debit the Depreciation Expense account and you would Credit the Accumulated Depreciation Account. Accumulated Depreciation is a contra-asset, therefore when adding to it, you credit it.