Trial Balance - Sessions 8 & 9

Trial Balance • A Trial Balance is a summary of all the ledger balances outstanding as on a particular date. • All debit balances are shown on one side and all credit balances are shown on the other side. • Trial Balance must tally.

Trial Balance • Trial Balance shows the correctness in recording the transactions and also shows the summary of all accounting heads.

Trial Balance • According to Double Entry Book-Keeping System, every transaction has two equal and opposite effects ; which we show in the form of Debits & Credits. • On the basis of same principle , we prepare Trial Balance. Hence Trial Balance must tally.

Trial Balance • All Assets & Expenses/ Losses have Debit balance. • All Liabilities & Incomes / Profits have Credit balance.

Format of Trial Balance Particulars

Debit (Rs)

Capital Salaries Discount Recd.

Credit (Rs) XXX

XXX XXX