Double-entry: ACB → Ledger → Trial Balance
1
Analysed Cash Book
Every cash & bank transaction is recorded here, with the amount split into the correct analysis column (Sales, Purchases, VAT, Wages, …). DR = money in · CR = money out
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2
Ledger T-accounts
The totals of each analysis column are posted to their own T-account — on the opposite side from the cash book. Each account is then balanced.
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3
Trial Balance
The closing balances from every ledger account are listed in two columns. DR total = CR total ✓
Worked example · Eat Right Ltd · May 2024
2025 Q17 (a)
Transactions edit any amount to recompute · click a row to see where it goes
| Date | Transaction | Amount € | VAT |
|---|---|---|---|
| 01/05/24 | Shareholders invested in the company | — | |
| 03/05/24 | Purchased goods for resale | + 23% | |
| 05/05/24 | Sold goods | + 23% | |
| 12/05/24 | Paid wages | — | |
| 19/05/24 | Paid electricity bill | — | |
| 26/05/24 | Paid wages | — |
DR · Receipts (money in)+
| Date | Details | Bank | Sales | VAT | Capital |
|---|---|---|---|---|---|
| 01/05/24 | Capital | 17,500 | 17,500 | ||
| 05/05/24 | Sales | 13,530 | 11,000 | 2,530 | |
| 31,030 | 11,000 | 2,530 | 17,500 | ||
| 01/06/24 | Bal b/d | 11,960 |
CR · Payments (money out)−
| Date | Details | Bank | Purch. | VAT | Elec. | Wages |
|---|---|---|---|---|---|---|
| 03/05/24 | Purchases | 11,070 | 9,000 | 2,070 | ||
| 12/05/24 | Wages | 3,000 | 3,000 | |||
| 19/05/24 | Electricity | 2,000 | 2,000 | |||
| 26/05/24 | Wages | 3,000 | 3,000 | |||
| 31/05/24 | Bal c/d | 11,960 | ||||
| 31,030 | 9,000 | 2,070 | 2,000 | 6,000 | ||
MIC: Money In (capital, sales) → Credit · MOD: Money Out (purchases, wages, electricity) → Debit
DR side of ACB → CR side of ledger · CR side of ACB → DR side of ledger. Every column total is posted as a single entry on the opposite side of its own T-account, dated 31/05/24 (last day of the month), with details "Bank".
DrCapital a/cCr
31/05/24 Bank 17,500
DrSales a/cCr
31/05/24 Bank 11,000
DrPurchases a/cCr
31/05/24 Bank 9,000
DrElectricity a/cCr
31/05/24 Bank 2,000
DrWages a/cCr
31/05/24 Bank 6,000
DrVAT a/cCr
31/05/24 Purchases 2,070
31/05/24 Sales 2,530
31/05/24 Bal c/d 460
2,530
2,530
01/06/24 Bal b/d 460
Trial Balance of Eat Right Ltd as at 31st May 2024
STEP 3
Account
Dr €
Cr €
Capital
17,500
Sales
11,000
Purchases
9,000
Electricity
2,000
Wages
6,000
VAT
460
Bank
11,960
Totals
28,960
28,960
1
Date c/d as 31/05/24, b/d as 01/06/24. Balances always flip to the opposite side on the next day.
2
Post the column total of each analysis column — not the individual lines — with details “Bank” or “Cash”.
3
VAT account has both sides — balance it and bring the difference down. The bank balance is already in the ACB.
jcbusinesshub.com · Junior Cycle Business · Accounts
