Trial Balance

At the end of accounting period, a list of General Ledger balances or totals is prepared, this list is called Trial Balance. It shows the mathematical accuracy of the Books of Accounts. For every transaction in the Double Entry Accounting, equal amount of debit and credits are recorded in the accounting books. Both sides of trial balance i.e. Debit side and credit side must be equal. If both sides are not equal, there are errors in the general ledger accounts or in Journal Entry.

 

Preparation of Trial Balance

For preparation of Trial Balance, following 4 steps are followed:

  1. Write down the company / business name at the top middle of paper.
  2. Write words ‘Trial Balance’ below company / business name at top middle of paper.
  3. Write words ‘ as on ‘ with date of preparation in the next line just below.
  4. Write down balances/totals of all ledger accounts.

 

trial balance sheet

Trial Balance can be prepared on a loose sheet that may have five columns:

                            (a) Serial No.;

                           (b) Heads of Account;

                           (c) Reference;

                          (d) Debit Balance and

                           (e) Credit Balance

 

>>> Do Practice with the help of Trial Balance Format.



 

Types of Trial Balance

There are three types of Trial Balance, which are describe below:

 

1. Trial Balance with Balances

This is commonly used Trial Balance, under this method, the balances are presented:

what is a trial balance

Download

Trial Balance with Balances Format

 

2. Trial Balance with Totals

Under this method, the trial balance is prepared by taking the total of each side of the accounts without balancing the accounts. This method of preparing a trial balance is not commonly used because it cannot help in preparation of Financial Statement.

trial balance format

Download

Trial Balance with Totals Format



3. Trial Balance with Balances & Totals

Under this method, combining the first and second method.

unadjusted trial balance

Download

Trial Balance with Balances & Totals Format

 

>>> Try Trial Balance MCQs.

 

Trial Balance Example

From the following Ledger Account of Ms Anum Saleem, you are required to prepare Trial Balance with Balances, Trial Balance With Totals and Trial balance with Balances & Totals as on Jan 31st, 2015:

trial balance example

 

trial balance sheet

 

what is a trial balance

 

trial balance definition

 

a trial balance

 

Solution: Trial Balance with Balances

 

trial balance software for accountants

 

Solution: Trial Balance with Totals

 

quickbooks trial balance

 

Solution: Trial Balance with Balances & Totals

 

quickbooks online trial balance

 

>>> Practice Trial Balance Examples