What is an adjusted trial balance?
After we make any adjusted entries, we will prepare adjusted trial balance. An adjusted trial balance is listing of all the account titles and balances in the general ledger after the adjusting entries.
The purpose of the adjusted trial balance is certain that the total amount of debit balances in the general ledger equals the total amount of credit balances. Adjusted trial balance is final step to prepare financial statements such as income statement, balance sheet, statement of cash flow etc.
Sample of all account types for trial balance are as follows:
|
ABC Company Adjusted Trial Balance December 31, 2017 |
|||
| 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).