Trial Balance - BC Bookkeeping Tutorials|dwmbeancounter.com

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Trial Balance

Closing The Books

What is a Trial Balance ? A worksheet listing of all the accounts appearing in the general ledger with the dollar amount of the debit or credit balance of each.

Where do we get the information needed to prepare our Trial Balance ? Hopefully, you said from our General Ledger Accounts.
What purpose does a Trial Balance serve ? It provides proof that the total balance of our General Ledger Debit Accounts equal the total balance of our General Ledger Credit Accounts. In other words, total debits and credits are equal.

It does not prove that there were no errors made recording the transactions. Wrong amounts and wrong accounts could have been used in entering the transactions.
Sample Trial Balance
Shabby Computer Systems   
Trial Balance Worksheet  
December 31, xxxx  
Account Name  / DescriptionTrial Balance

DebitCredit
Balance Sheet Accounts


Cash
5500
Accounts Receivable
25800
Office Supplies Inventory
1500
Prepaid Insurance
6000
Inventory for Resale
10500
Truck
15500
Accounts Payable

1000
Other Accruals


Shabby Computer Systems, Capital

22100



Shabby Computer Systems, Drawings
24000



Total Balance Sheet Accounts
8880032100



Revenue & Expense Accounts


Consulting Services

50000
Computer Sales

100000
Cost of Goods Sold-Computers


Purchases
70000
Rent Expense
6000
Utilities Expense
4800
Office Supplies


Insurance Expense


Vehicle Operation Expense
3600
Maintenance & Repairs
2400
Depreciation Expense


Bad Debt Expense


Bank Charges


Advertising Expense
4500
Professional Fees Expense
2000



Total Revenue/Expense Accounts
93300150000



 Total All Accounts
182100182100


What's Next ?

Adjusted Trial Balance Worksheet
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