Trial Balance Worksheet - BC Bookkeeping Tutorials|

Go to content

Trial Balance Worksheet

Financial Statements
Trial Balance Worksheet

A Trial Balance/Worksheet that we discussed earlier is prepared from the General Ledger. The balances are taken from the General Ledger and listed in this Trial Balance Worksheet in the order of the accounting equation.

Asset balances are listed first; followed by Liabilities; and then Owner’s Equity (“Ma Capital”); and finally her “kids” Revenues and Expenses.

Once you have a Trial Balance it’s simply a matter of transferring the amounts from the Trial Balance to use to prepare the Balance Sheet, Income Statement, and Capital Financial Statements. Add in the prior year’s balance sheet and you have the information needed for preparing the Cash Flow Statement.

ABC Trial Balance
ABC Mowing
Trial Balance Year End
AccountDebit BalancesCredit BalancesAccount Type
Asset Accounts

Balance Sheet
Accounts Receivable1600
Balance Sheet
Inventory-Office Supplies100
Balance Sheet
Mowing Equipment12500
Balance Sheet

Liability Accounts

Accounts Payable
2060Balance Sheet
Note Payable-Bank
10000Balance Sheet

Equity Accounts

Owner's Capital
7500Balance Sheet
Owner's Draws1100
Balance Sheet

Revenue Accounts

Mowing Revenue
1205Income Statement

Expense Accounts

Mulch Expense160
Income Statement
Advertising Expense225
Income Statement

It should be apparent that by having the information from the General Ledger and the Trial Balance one can readily prepare the Balance Sheet, Income Statement, and Capital financial statements.

The Trial Balance/Worksheet normally contains additional columns for adjusting and closing entries.

Briefly, closing entries transfer (close) the balances in the General Ledger’s individual revenue, expense, and drawing account(s) to the owner’s capital account at the end of a period (usually year end) which results in the same General Ledger Capital Account ending balance as contained in the Capital Statement. This Ending Capital balance becomes the new Beginning Capital Balance for the new year.

All the revenues, expense, and drawing account balances are reset to zero so that their balances will only represent transaction amounts (increases and decreases to owner’s equity) in the new year.

The Statement that determines whether a business
had a Profit or a Loss - Income Statement
Back to content