Appendix 4: Balancing Accounts a) Formal balancing Inventories 1 Balance b/d 20 Dec 2 Cost of Goods 750 000 Sold 6 Cash 1 000 4 Cost of Goods 1 550 Sold D Austin 400 19 D Austin 100 24 Drawings 250 31 Balance c/d 18 750 $21 $21 400 400 1 Balance b/d 18 750 b) Informal or pencil/circle balancing Inventories Dec 1 Balance 20 Dec 2 Cost of Goods 750 b/d 000 Sold 6 Cash 1 000 4 Cost of Goods 1 550 Sold 12 D Austin 400 19 D Austin 100 24 Drawings 250
Appendix 4: Balancing Accounts a) Formal balancing Inventories 1 Balance b/d 20 000 Dec 2 Cost of Goods Sold 750 6 Cash 1 000 4 Cost of Goods Sold 1 550 D Austin 400 19 D Austin 100 24 Drawings 250 31 Balance c/d 18 750 $21 400 $21 400 1 Balance b/d 18 750 b) Informal or pencil/circle balancing Inventories Dec 1 Balance b/d 20 000 Dec 2 Cost of Goods Sold 750 6 Cash 1 000 4 Cost of Goods Sold 1 550 12 D Austin 400 19 D Austin 100 24 Drawings 250
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