Trial Balance

What is a Trial Balance?

• A list of all the journal entries

• A list of all the ledger accounts and their ending balances

A trial balance is prepared to facilitate the preparation of the ​ (a)   and to ​ ensure the ​ (b)   accuracy in recording.

• financial statements
• arithmetic
• mathematical

Match the following.

• Expense

• Discount allowed

• Assets

• Discount received

• Liabilities

• Owner's contribution

• Income

• Fixtures and fittings

• Capital

• Mortgage loan

Calculate the total debit balance in the trial balance created based on the following accounts:

Capital= $1 000

Cash at bank= $400

Inventory= $2 520

Sales revenue= $200

Cost of sales= $80

Trade payables= $2 000

Rental expense= $1 000

Mathematical Equivalence

ON

Calculate the total credit balance in the trial balance created based on the following accounts:

Capital= $1 000

Cash at bank= $400

Inventory= $2 520

Sales revenue= $200

Cost of sales= $80

Trade payables= $2 000

Rental expense= $1 000

Mathematical Equivalence

ON

When is a Trial Balance balanced?

• When more than one account is affected.

• When there are debit and credit balances.

• When total debit equals to total credit.

The double entry recording rules say that at least ​ (a)   accounts will be affected for every transaction in the business.

• two
• three
• one

The double-entry recording rules say that total ​debit ​ (a)   total credit.

• equals to
• is more than
• is less than