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How a trial balance is extracted from a set of accounting records

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How a trial balance is extracted from a set of accounting records A trial balance is a list of the names and balances of all the accounts showing in the ledger including cash and bank balances from the cash book. A trial balance checks to see if the debit equals the credit. If debit total is not same as the credit total then the records don't balance and there must be a mistake. ...read more.


Debit balances are listed in the left side and credit balances in the right side. The Trial Balance is a list of all the ledger accounts. You have to list all your total debits and credits from each general ledger account. There should be three columns and they should be account name, debit and credit. For each account you have to total your debit and credit for the accounting day for which you are doing the trial balance. ...read more.


If you want to find the mistake then you have to calculate the credit and debit columns again. The trial balance shows that the accounts balance. For example: Trial Balance 30-Apr-10 Debits Credits Bank 93,500 Capital 150,000 Purchases 8,700 Sales 3,950 Return outwards 800 Vehicles 49,500 Hunt 2,200 Drawing 1,850 Hall 2,750 Insurance 1,750 157,500 157,500 This trial balance shows that the credits and debits balance, because they both have the same total amount which is 157,500. If they wouldn't balance then there would be a mistake in the general ledger accounts. For example: ...read more.

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