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    DirtyRay's Avatar
    DirtyRay Posts: 8, Reputation: 1
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    #1

    Apr 11, 2007, 05:17 PM
    If T-Accounts Balance does this mean balance sheet & P&L work correctly?
    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Apr 11, 2007, 09:56 PM
    Quote Originally Posted by DirtyRay
    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??)
    Yes, that is exactly what it means.


    Quote Originally Posted by DirtyRay
    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?
    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.
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