Chapter 8: Trial Balance

Trial Balance is a ______.

• A list of all the ledger accounts and their balances extracted from the General Ledger

• Prepared on a given date, usually at the end of the financial period

• Prepared after identification and recording of source documents, but before preparation of Income Statement and Balance Sheet

• All of the above

One purpose of Trial Balance is to ___.

• To verify that the total of all accounts with debit balances = the total of all accounts with credit balances

• To help to check for arithmetic (mathematical )errors that may have happened

• To help in the preparation of the financial statements

• All of the above

The LAST step of Trial Balance is ___.

• Check that total debit amount = total credit amount Trial Balance is balanced.

• Extract all accounts with balances from General Ledger.

• List them down by indicating their account names.

• For each account, indicate the balance in either the debit or credit column.

• Total all amounts under debit column. Do the same for credit column.

The FIRST step of Trial Balance is ___.

• Check that total debit amount = total credit amount Trial Balance is balanced.

• Extract all accounts with balances from General Ledger.

• List them down by indicating their account names.

• For each account, indicate the balance in either the debit or credit column.

• Total all amounts under debit column. Do the same for credit column.

For each account, indicate the balance in either the ___ or ___ column.

• Debit , credit

• Plus, Minue

Format of Trial Balance > First item to input is___.

• Business name

• Trial Balance as at 31 December 2018

• DR CR

• $ $

Nature of Long-term borrowing (bank loan): ____.

• DR

• CR

Nature of Cost of sales: ____.

• DR

• CR

Nature of Fixtures & fittings: ____.

• DR

• CR

Nature of Office equipment: ____.

• DR

• CR