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Previous year's balances | ||
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Previous year's balances
by Mark
Q: Hi, I have details for accounts from 2010: Cash at bank 1100 $6,560 Accounts receivable 1200 $7,760 Prepaid Insurance 1300 $380 Now I need to make T accounts for the financial year 2011. I have a number of details as follows: 1. Tuning fees of $57,000 were receivable during the year; $47,900 of this total was received in cash. The remainder consisted of transactions on credit. 2. Revenue from piano repairs was $48700. Cash received totaled $33,500, and accounts receivable increased by $15,200. My question is, do I put the end balance of 2010 into the 2011 T accounts, and if so where do I put them? Thanks, M. A: Mark, yes you put the end balances of 2010 into the T-accounts for 2011. The closing balance (end balance) of one year is the same as the opening (beginning) balance for the next year. Check out this lesson on Balancing T-Accounts to see where the opening balance (the same as the closing balance from the previous year) is placed in the T-Account. Return to Ask a Question About This Lesson!. Enjoying this Website? |
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