Adjusted Trial Balance

A list that contains all the accounts and their balances after Adjusting Entries have been made is called Adjusted Trial Balance. The adjusted trial balance is prepared after all adjusting entries have been journalized and posted. It shows the balances of all accounts, including those that have been adjusted, at the end of the accounting period. The purpose of the adjusted trial balance is to prove the equality of the total debit balances and total credit balances in the ledger after all adjustments. The two columns of the adjusted trial balance should equal each other in the same way that the trial balance does. Financial Statement can be prepared directly from the adjusted trial balance.

Adjusted Trial Balance = Trial Balance Plus or minus Adjustments


adjusted trial balance


>>> Adjusted Trial Balance Format

Adjusted Trial Balance Examples

Example # 1

Prepare Adjusted Trial Balance for the year ending 31st December 2016 from the Trial Balance and adjustments of Mishal Company given below:

adjusted trial balance example



  • Depreciate machinery @ 5% p.a. by written down method.
  • Outstanding Salaries Rs. 2,000.
  • Insurance paid in advance Rs. 500.
  • Maintain @ 5% allowance for doubtful debts on sundry debtors.
  • Supplies at the end of year of worth Rs. 20,000.



adjusted trial balance sheet


the adjusted trial balance is prepared


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