What is trial balance and how to work with it ?

Please is there anyone can explain trial balance and how to use it ?

Answers

  • Afair13Afair13 Posts: 6AAT Student, AATQB
    Hi arezo88,

    A trial balance is a list of your accounts with the current figure of those accounts either on the Debit (Dr) or Credit (Cr) side.

    Dr
    Receivables 8,400
    Office Supplies 2,000
    Purchases 4,000
    Bank 7,400

    Cr
    Capital 10,000
    Sales 7,000
    Creditors 4,800


    The debit and credit should balance, you can then extend this to an extended trial balance and use the figures to create your profit & loss and Balance Sheet.

    If you have not seen a trial balance before it is usually in a three column format but sadly I cannot seem to be able to post on this discussion board as so. If you google image trial balance you should get a clearer view of what I mean.
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