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 / Description||Trial Balance|
Balance Sheet Accounts
Office Supplies Inventory
Inventory for Resale
Shabby Computer Systems, Capital
Shabby Computer Systems, Drawings
Total Balance Sheet Accounts
Revenue & Expense Accounts
Cost of Goods Sold-Computers
Vehicle Operation Expense
Maintenance & Repairs
Bad Debt Expense
Professional Fees Expense
Total Revenue/Expense Accounts
| Total All Accounts ||182100||182100|
What's Next ?
Adjusted Trial Balance Worksheet