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Trial Balance

A Trial Balance is a list of the Balance B/D of every Ledger account used to ensure that every debit entry has an equal credit entry and that accounts are balanced correctly. It consists of two columns for Debit and Credit balances, and both columns must total the same amount. Specific account types are noted to always have either a Debit or Credit balance.

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21 views1 page

Trial Balance

A Trial Balance is a list of the Balance B/D of every Ledger account used to ensure that every debit entry has an equal credit entry and that accounts are balanced correctly. It consists of two columns for Debit and Credit balances, and both columns must total the same amount. Specific account types are noted to always have either a Debit or Credit balance.

Uploaded by

sibandafrancis304
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Trial balance

A Trial Balance is a list of the Balance B/D of every Ledger account. This is done to
check that:

a) every debit entry in the ledger has an equal credit entry


b) the ledger accounts have been balanced off correctly

How to draw up a Trial Balance

The Trial Balance consists of two columns – one for the DEBIT balances b/d and one for
the CREDIT balances b/d. If a ledger account has a Debit balance b/d, then copy it’s
balance in to the Debit column of the Trial Balance (the same for Credit balances b/d –
copy into the Credit column of the Trial Balance).

Example:
Debit Credit
Bank 10 000
Wages 2 000
Cash 8 000
Capital 40 000
Drawings
Purchases [Link]
15 000
Sales 30 000
Vehicles 60 000
Debtors 12 000
Creditors 37 000

107 000 107 000

The debit and credit columns of the trial balance must add up to the SAME TOTAL,
otherwise a mistake needs to be found in the ledger.

Notice:

DAX accounts will always have a DEBIT Balance b/d

LIC accounts will always have a CREDIT Balance b/d

D – Debtors A – Assets X – Expenses

L – Liabilities I – Income C – Capital

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