Trial balance
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The ledger account to which a difference on a trial balance may be posted
Suspense account
What determines whether the balances of an account is entered in the debit column or the credit column
Assets and expense determines if it is entered in the debit column Liabilities and income determines if it is entered in the credit column
What is indicated if the totals of a trial balance agree
If the totals agree, it indicates that double entry bookkeeping is arithmetically correct
What is a trial balance
It is a list of balances on the accounts in the ledger at a certain date
Two purposes of preparing a trial balance
Locates arithmetical errors Can prepare a financial statement