Trial Balance
The trial balance is a worksheet listing all accounts and their balances to verify that debits equal credits. Learn how to prepare and analyze trial balances.
The trial balance is a worksheet listing all accounts and their balances to verify that debits equal credits. Learn how to prepare and analyze trial balances.
Key Concepts
Study Tips
- ✓List accounts in order: assets, liabilities, equity, revenue, expenses
- ✓Double-check each balance before adding to the trial balance
- ✓If it doesn't balance, check for transposition errors (numbers flipped)
- ✓Verify that all journal entries were posted correctly to T-accounts
Common Mistakes to Avoid
Common errors include transposition errors (writing 54 as 45), slide errors (writing 100 as 1000), and forgetting to post entries. If your trial balance doesn't balance, divide the difference by 9 - if it's evenly divisible, you likely have a transposition or slide error.
Related Resources
Trial Balance FAQs
Common questions about trial balance
First, verify arithmetic. Then check for transposition or slide errors by dividing the difference by 9. Review all journal entries to ensure they balance, and verify all postings to T-accounts are on the correct side.
The unadjusted trial balance is prepared before adjusting entries, while the adjusted trial balance is prepared after all adjusting entries have been posted. The adjusted version is used to prepare financial statements.
No. A balanced trial balance only proves that total debits equal total credits. It doesn't catch errors like posting to the wrong account, completely omitting a transaction, or recording the wrong amount on both sides.
A post-closing trial balance is prepared after all closing entries have been posted. It contains only permanent accounts (assets, liabilities, equity) because all temporary accounts (revenues, expenses, dividends) have been closed to zero. It verifies that the ledger is in balance before the next accounting period begins.