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, 20X7 |
|||
| 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).
