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oneye
Jul 28, 2009, 11:34 AM
I am doing a home bookkeeping course. I am stuck on doing a extended trial balance. I balance the trial balance and adjustments columns but I am becoming more and more mixed up with where to post entries into the p&l account and balance columns.
Thanks for any help you can give me.

morgaine300
Jul 29, 2009, 11:59 PM
You have five kinds of accounts: assets, liabilities, equity, revenue & expenses. The first three, which is your accounting equation, is the balance sheet accounts. The last two are your income statement accounts.

Theoretically, they should be in that correct order, meaning all you should have to do is find where revenue starts and that's the split between the B/S and I/S.

(And by the way, you aren't posting entries. You post entries from a journal to a ledger account. What you're doing is simply extending the dollar amounts over to those columns.)