The last two steps in the accounting process are

preparing a trial balance and then preparing the

balance sheet and income statement. This information
is provided in order to communicate the financial
position of the entity to interested parties.

TRIAL BALANCE

A trial balance is a list and total of all the debit and

credit accounts for an entity for a given period
usually a month. The format of the trial balance is a
two-column schedule with all the debit balances listed
in one column and all the credit balances listed in the
other. The trial balance is prepared after all the
transactions for the period have been journalized and
posted to the General Ledger.

Key to preparing a trial balance is making sure that all

the account balances are listed under the correct
column. The appropriate columns are as follows:

Assets = Debit balance

Liabilities = Credit balance
Expenses = Debit Balance
Equity = Credit balance
Revenue = Credit balance

Should an account have a negative balance, it is

represented as a negative number in the appropriate
 column. For example, if the company is $500 into the
overdraft in the checking account the balance would
be entered as -$500 or ($500) in the debit
column. The $500 negative balance is NOT listed in
the credit column.

Example Trial Balance:

1. In your program, or on the paper, which should have at

least three columns, list all of the accounts still open on the
general ledger.
2. Next, list the balances of these accounts. ...
3. Finally, add up the debit balances, then the credit
balances.
Trial Balance Example: How to Prepare This Simple
Statement
https://blog.udemy.com/trial-balance-example/
Trial Balance Example: How to Prepare This Simple
Statement
MARCH 28, 2014 BY MATTHEW JOHNSON