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in a trial balance for end of year, do I show the credit card opening balance or the amount spent on the credit card for the year?
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Hi Richard
Its the balance that needs to be input as the trial balance is as the name suggests a balance as a particular date.
Hi Richard, the trial balance at a specified date needs to report whatever credit card balance is on that date.
for example, lets say you are reporting for the 2016-17 financial year, and there is $500 owing on the credit card on 1/7/16.
then after all the trading income and expenses for the year are taken up, the credit card has $875 owing on 30 June 2017,
the trial balance will show a credit balance of $875 as at 30 June 2017
the trial balance will show a credit balance of $500 as at 1 July 2016.
but it will never show how much you spent on the credit card: it just reports the amount owing on a particular date.
hope this helps
bc