Trial Balance, Income Statement and Balance Sheet

After Sir Randy distributed the results of our PT, we discussed about recording trial balance, income statement and balance sheet of a merchandising business. We also had our research about these documents.

Upon discussing these three documents, I realized that recording the trial balance of a merchandising business is just the same as recording the trial of a service business. It’s just that recording the trial balance of a merchandising business is much easier with the help of the ledger using T-accounts compared to what we did last year that we still have to write the ledger in a 3-column.

Noong diniscuss na ni Sir ang income statement at balance sheet, nagkagulo na hahahaha. It’s almost the same as recording the income statement and balance sheet of a service business. It’s just that there were just added account titles like sales, purchases, MIB, MIE, etc. It was really complicated (parang kami char hahaha :)) Actually, I didn’t fully understand it when Sir was discussing them but when I checked and studied again the format, I was able to sink in all the information :)