Trial balance is a summary (in a table form) of all general ledger accounts, used to check whether posting from general journal to general ledger was correctly done and whether balances in accounts with debit balance are equal to balances in accounts with credit balances. Please note that trial balance is not a financial statement, it is a working table to be used to prepare financial statements.

In order to prepare trial balance of Alfa as of June 30, 2007 each general ledger account used to account for transactions performed in Alfa during June, 2007 are reviewed and balances from these accounts are included into the table, which layout is presented below. First column of this table includes name of the account, second column- number of the account, third column – debit accounts balances, fourth column – credit accounts balances. Total amounts in debit and credit columns are calculated and MUST be equal. In case there is no equation, mistakes were done when journalizing transactions, or when posting from general journal to general ledger. There is also an example, how balance from the Accounts receivable account No. 14 is transferred to the trial balance.

Prepared Alfa’s trail balance as of June 30, 2007 indicates posting from general journal to general ledger was done correctly, as debit and credit amounts are equal.

Want more information on accounting? Learn Accounting Basic with our Accounting Basic Video Course. This is a detailed video course, helping you to learn accounting in a step by step manner. You can watch videos, you can print out video presentations, in this course you will find plenty of explanations and practical examples, which are essential to learn and understand accounting.

Start mastering your accounting skills with Accounting Basic Video Course. Click here to learn more...

What Next?

Subscribe to our RSS feed