Trial Balance

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

Two reasons for preparing a Trial Balance

A Trial Balance is a check on the arithmetic all accuracy of posting to the ledger accounts If the debit and credit totals are equal, then arithmetically the ledger entries are correct It provides a convenient list of ledger balances from which final accounts can be prepared It will be very useful if debtors and creditors balances are included

Meaning of the term "Trial Balance"

A Trial Balance is neither a book nor an account, but simply a list of balances extracted from the General Ledger as well as can and bank balances in the Cash Book and the petty cash balances in the Petty Cash Book. For every debit entry there is a corresponding credit entry and vice versa

Sections in a Trial balance

Balance sheet account section Nominal account section


Ensembles d'études connexes

Positioning Terminology - Chapter 1

View Set

Cardiovascular (Dysrhythmias, MI) Critical Care

View Set

UNCC BIOL3111 Exam 3 Chapter 6 Study Questions

View Set