How to Prepare Trial Balance for Accounting Cycle:
After prepare general ledger, we will prepare trial balance. A trial balance is a bookkeeping worksheet that lists the balances in each general ledger account. The debit balances are listed in a column with the heading “Debit” and the credit balances are listed in another column with the heading “Credit.” Most trial balances will not list any account having a zero balance. The total of each of these two columns should be identical.
Sample of all account types for trial balance are as follows:
ABC Company Trial Balance December 31, 2017 |
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Account Number | Account Title | Debit | Credit |
xxx | Asset | xxx | |
xxx | Contra Asset | xxx | |
xxx | Equity | xxx | |
xxx | Contra Equity | xxx | |
xxx | Liability | xxx | |
xxx | Contra Liability | xxx | |
xxx | Revenue | xxx | |
xxx | Contra Revenue | xxx | |
xxx | Gain | xxx | |
xxx | Expense | xxx | |
xxx | Loss | xxx | |
xxx | Total | xxx | xxx |
Note:
Total debit must equal total credit (Dr=Cr).