4.6

THE TRIAL BALANCE

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© Michael Allison. Author’s permission required for external use.

At the end of the period a Trial Balance must be prepared which

l ists the balances of every ledger account at a certain date

4.6 THE TRIAL BALANCE

Trial Balance

• A list of General Ledger accounts with their

balances.

• Used to check the total of all debit entries

equals the total of all credit entries.

© Michael Allison. Author’s permission required for external use.

Trial Balance as at 31 March 2015

List of all accounts with a… List of all accounts with a…

DEBIT Balance CREDIT Balance

Trial Balance as at 31 March 2015

List of all accounts with a… List of all accounts with a…

DEBIT Balance CREDIT Balance

Trial Balance as at 31 March 2015

List of all accounts with a… List of all accounts with a…

DEBIT Balance CREDIT Balance

4.6 THE TRIAL BALANCE

© Michael Allison. Author’s permission required for external use.

The DEBIT and CREDIT Balances of the ledgers are transferred to the Tr ial

Balance

The General Ledger

Ledger Ledger Ledger

Ledger Ledger Ledger

Ledger Ledger

Trial Balance as at 31 March 2015

$ $

Ledger

Ledger

Trial Balance as at 31 March 2015

DEBIT Balances $ $

Trial Balance as at 31 March 2015

DEBIT Balances $ $

Cash at Bank 10000

Stock 25000

Wages 3000

Rent 15000

53000

Trial Balance as at 31 March 2015

DEBIT Balances $ CREDIT Balance $

Cash at Bank 10000 Creditors 2000

Stock 25000 GST Liability 1500

Wages 3000 Accrued wages 1000

Rent 15000 Loan – NAB 4000

Sales 21000

Capital 23500

53000 53000

Trial Balance as at 31 March 2015

DEBIT Balances $ CREDIT Balance $

Cash at Bank 10000

Stock 25000

Wages 3000

Rent 15000

53000

4.6 THE TRIAL BALANCE

© Michael Allison. Author’s permission required for external use.

One of the benefits of the Tr ial Balance is that i t al lows you to check if :

Thus, a Trial Balance assists the firm in its Internal control – the practices involved to ensure

that

• Accounting records and reports are accurate and reliable

• The firm’s Assets are protected from theft, fraud and misrepresentation

DEBITS CREDITS=

4.6 THE TRIAL BALANCE

© Michael Allison. Author’s permission required for external use.

TASK

In-class Homework

SQ8 X

SQ9 X