Prepare Trial Balance

HOW TO USE THIS
COMPETENCY- BASED LEARNING MATERIAL (CBLM)
Welcome to the competency-based learning material for the module:

Preparing Trial Balance. This module contains training materials and
activities for you to accomplish.
The unit of competency, "Prepare Trial Balance", contains the
knowledge, skills and attitudes required for a TVET trainer to possess.
You are required to go through a series of learning activities in order to
complete each learning outcomes of the module. In each learning outcome,
there are instructional sheets (Information Sheets, Self-Checks, Operation
Sheets and Task/Job Sheets) for further reading to help you better
understands the required activities. Follow the activities at your own pace and
answer the self-check at the end of each learning outcome. If you have
questions, please feel free to ask for assistance of your trainer/facilitator.
This module was prepared to help you achieve the required competency:
Prepare Trial Balance. This willbe the source of information for you to acquire
the knowledge and skills in this particular module with minimum supervision
or help from your trainer. With the aid of this material, you will acquire the
competency independently and at your own pace.
Remember to:
Work through all the information and complete the activities in each
section. Do what is asked in the INSTRUCTIONAL SHEET (TASK SHEET, JOB
SHEET) and complete the SELF-CHECK.Suggested referencesare included to
supplement the materials provided in this module.
Most probably, your trainer will also be your supervisor or manager. He
is there to support you and show you the correct way to do things. Ask for help.
You will be given plenty of opportunities to ask questions and practice on
the job. Make sure you practice your new skills during regular work shifts. This
way, you will improve your speed, memory and your confidence.
Use the Self-Check questions at the end of each section to test your own
progress.
When you feel confident that you have had sufficient practice, ask your
Trainer to evaluate you. The result of your assessment/evaluation will be
recorded in ACHIEVEMENT CHART AND PROGRESS CHART.
You need to be competent in this module before you can move to the next
competency. A CERTIFICATE OF ACHIEVEMENT will be awarded to you after
passing the Institutional Competency Evaluation.
Date Developed: Document No.

Bookkeeping NC III
May 29, 2013
Prepared by:
Prepare Trial Balance Issued by:
TESDA - PPSAT Page 1 of 17
MARINA C PERIA
BOOKKEEPING NC III
List of Core Competencies
No. Unit of Competency Module Title Code
1 Journalize Transactions Journalizing Transactions HCS412301
2 Post Transactions Posting Transactions HCS412302
3 Prepare Trial Balance Preparing Trial Balance HCS412303
4 Prepare Financial Reports Preparing Financial Reports HCS412304
5 Review Internal Control System Reviewing Internal Control HCS412305
System
QUALIFICATION : BOOKKEEPING NC III

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
UNIT OF COMPETENCY: PREPARE TRIAL BALANCE
MODULE TITLE : PREPARING TRIAL BALANCE
INTRODUCTION :
ATrial Balance is a device used to periodically test the equality of debits
and credits as recorded in the ledger accounts.
It is the transfer of the ledger accounts’ open balances to another

accounting form in order to check the accuracy of the debit and credit totals.
NOMINAL DURATION : 16 HOURS
SUMMARY OF LEARNING OUTCOMES:

At the end of this module, you must be able to:
LO1. List account titles
LO2. Transfer balances from the ledger
LO3. Summarize trial balance
SUMMARY ASSESSMENT CRITERIA:

1. Asset, liability, equity, revenue and expenses titles are listed in
accordance with the Chart of Account.
2. Asset, liability, equity, revenue and expenses are transferred in

accordance with Chart of Accounts
3. Debits and credits are totaled with 100% accuracy.
4. Trial balances are extracted with 100% accuracy.
PRE-REQUISITE: JOURNALIZE TRANSACTIONS& POST TRANSACTIONS
Learning Outcome 1 -LIST ACCOUNT TITLES

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
Contents:
1. Chart of Accounts
Assessment Criteria:
1. Asset, liability, equity, revenue and expenses titles are listed in
accordance with the Chart of Account.
Contents:
 Listing of Account titles for all types of business organization and
activities.
Conditions:
Trainees must be provided with the following:
Equipment:
 LCD Projector
 Laptop
Supplies and materials:
 Ledger
 Pencil
 Pencil Eraser
 Ruler
Tools:
 Stapler
 Calculator
Methodologies:
 Group discussion

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
 Interaction
 Lecture
 Practical exercises
Assessment Methods:
 Written test
 Practical/performance test
LEARNING EXPERIENCES

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
Learning Outcome  1 List Account Titles
Learning Activities Special Instructions
1.List Account Titles from

the Ledger Read Information Sheet 1.1-1
Answer Self-check 1.1-1
Compare your answers with the answer key 1.1-1
2. Classify account titles Perform procedure on Task sheet 1.1-1
according to assets,
liabilities, equity, revenue
and expenses.
3. Assign account code

of each account title.
4. Transfer balances
from the ledger.
5.Summarize Trial
Balance
INFORMATION SHEET 1.1-1

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
Learning Outcome 1 - LIST ACCOUNT TITLES
LEARNING OBJECTIVES:
After reading this Information Sheet, the trainee must be able to:
1. List account titles from the ledger.

2. Classify account titles according to assets, liabilities, equity, revenue
and expenses.
LIST OF ACCOUNT TITLES FROM THE LEDGER
Ledger of Krystal Enterprises shows the following:
ACCOUNT TITLE CASH

ACCOUNT CODE 101
page 1
DATE REMARKS REF PARTICULARS DEBIT CREDIT BALANCE
1-Dec GJ 1 Initial Capital 300,000.00 300,000.00
3-Dec GJ 1 Collection of A/R 80,000.00 380,000.00
10-Dec GJ 1 Drawings 10,000.00 370,000.00
15-Dec GJ I Payment of A/P 50,000.00 320,000.00
31-Dec GJ I Paymnt of Salaries Exp 5,000.00 315,000.00
ACCOUNT TITLE: ACCOUNTS RECEIVABLES

ACCOUNT CODE 102

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
3-Dec GJ 1 Collection of A/R 80,000.00 80,000.00
5-Dec GJ 1 Sales on Account 110,000.00 30,000.00
ACCOUNT TITLE SERVICE VEHICLE

ACCOUNT CODE 110

25-
Dec GJ I Acquisition of Svehicle 125,000.00 125,000.00
ACCOUNT TITLE ACCOUNTS PAYABLE

ACCOUNT CODE 210

15-
Dec GJ 1 Payment of accounts 50,000.00 50,000.00
25-
Dec GJ 1 Purchase of vehicle 125,000.00 75,000.00
ACCOUNT TITLE KRYSTAL Enterprises, Capital

ACCOUNT CODE 310
1-Dec GJ 1 Initial Capital 300,000.00 300,000.00
ACCOUNT TITLE KRYSTAL, Drawing

ACCOUNT CODE 311
10-Dec GJ I Personal withdrawal 10,000.00 10,000.00
ACCOUNT TITLE ENTERPRISE REVENUE

ACCOUNT CODE 410

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
5-Dec GJ 1 Payment of accounts 110,000.00 110,000.00
ACCOUNT TITLE SALARIES EXPENSE

ACCOUNT CODE 501
31-Dec GJ 1 Payment of salaries 5,000.00 5,000.00
Below is the list of all account titles based from Krystal Enterprises ledger:
Account Title:
Cash
Accounts Receivable
Service Vehicle
Accounts Payable
KRYSTAL, Capital
KRYSTAL, Drawings
Enterprise Revenue
Salaries Expense
LO 2 – TRANSFER BALANCES FROM THE LEDGER
After reading this Information Sheet, the trainee must be able to:

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
.Transfer balances of assets, liabilities, equity, revenue and expenses in
accordance with Chart of Accounts.
Introduction:
Before a trial balance is made, each general ledger account with more
than one entry on either or both sides is footed. This means that the amounts
on each side of the account are totaled.
Footing is usually made if the ledger is a two-column ledger. However, if

the ledger were a three-column or a four – column ledger, footing would not be
a necessary because the ledger accounts have their respective running
balances already at the balance column of the ledger.
OPEN AND CLOSED ACCOUNTS
a. Open Account - is when the debit total and the credit total of an
account is not equal. There is a remaining balance. It is called
account balance. If debit total is greater than the credit total,
the account has debit balance. If the credit total is greater the debit
balance, the account has a credit balance.
b. Closed account - is when the debit total and the credit total of an
account are equal. There is azero ending balance.
RULES
1. Always start a trial balance with a heading Who, What and When.
2. Only ledger with open ending balances are included in the trial balance.
3. TOTALS of debit and credit are double ruled.
STEPS IN PREPARING THE TRIAL BALANCE
1. Write the heading at the top. The heading shows the name of the business on

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
thefirst line, trial balance on the second line and the date or month and year the
trial balance is being prepared on the third line.
2. The date of the trial balance must be the last date of the month.
3. Determine all open accounts in the ledger. Closed accounts are not
included. Write all open accounts under the account name title. If it has a
debit balance, write the amount under debit column. If it has a credit
balance, write the amount under credit column.
4. All debit and credit account titles in the trial balance are written with the same
margin from the left side of the page; meaning credit account titles should not be
indented.
5. Add each amount column and write the totals in small pencil figures in the
uppermost portion of space below the single ruling. If the two totals are equal,
write them in ink on the line.
6. Draw double lines under the totals of the debit and credit columns.
If the trial balance totals are not equal, the trial balance is said to be out-of-
balance. The maincauses of the errors are the following:
1. Posting of an item to the wrong side of the account
2. Erroneous copying when transferring a balance from the ledger accounts

to the trial balance.
3. Omission of the posting of either a debit or credit entry in the

journal
4. Posting the same account twice
5. Wrong addition or subtraction in determining the balance of anaccount.
KRYSTAL ENTERPRISES
TRIAL BALANCE
DECEMBER 31, 2010
Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
ACCT CODE ACCOUNT TITLES DEBIT CREDIT
101 Cash P 315,000.00

102 Accounts Receivable 30,000.00
110 Service Vehicle 125,000.00
210 Accounts Payable P 75,000.00

310 KRYSTAL Enterprises, Capital 300,000.00
311 KRYSTAL, Drawings 10,000.00
410 Enterprise Revenue 110,000.00
501 Salaries Expense 5,000.00
LO 3 – SUMMARIZE TRIAL BALANCE

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
After transferring balances from the ledger, Debit and Credit columns are
totaled. Total balance of Debit column should be equal to the total balance of
Credit column.
KRYSTAL ENTERPRISES
TRIAL BALANCE
DECEMBER 31, 2010
ACCT CODE ACCOUNT TITLES DEBIT CREDIT

101 Cash P 315,000.00
102 Accounts Receivable 30,000.00
110 Service Vehicle 125,000.00
210 Accounts Payable P 75,000.00

310 KRYSTAL Enterprises, Capital 300,000.00
311 KRYSTAL, Drawings 10,000.00
410 Enterprise Revenue 110,000.00
501 Salaries Expense 5,000.00
TOTAL P 485,000.00 P 485,000.00
HINTS FOR LOCATING ERRORS IN BALANCING TRIAL BALANCE
1. A DIFFERENCE OF p.01, .10, p1.00, p10, p100,ETC. SUGGESTS THAT

AN ERROR HAS BEEN MADE IN ADDITION, SUBTRACTION.
2. A DIFFERENCE OF p9 OR A MULTIPLE OF P9 INDICATES

TRANSPOSITION, MEANING THE ORDER OF FIGURES IS REVERSED. EX.
P29 IS WRITTEN AS P92.
3. A DIFFERENCE DIVISIBLE BY 2 INDICATES AN ERROR IN POSTING TO

THE WRONG COLUMN OF THE TRIAL BALANCE
4. A DIFFERENCE DIVISIBLE BY 9 OR 99 INDICATES A SLIDE OR
MISPLACEMENT OF DECIMAL POINT.
EX. P100 IS WRITTEN AS P10.
SELF-CHECK 1-1

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
MULTIPLE CHOICE:
Instruction –Encircle the letter that corresponds to the best answer.
1. The difference of the totals of debit and credit accounts is called
a. Account balance b. debit balance c. credit balance
d. normal balance
2. PR stands for
a. Program registration c. pre reference
b. Post reference d. posting reference
3. A device used to test the equality of debits and credits

a. Trial Balance b. ledger c. journal d. calculator
4. The total of debit and credit account are equal

a. closed account c. account balance
b. open account d. out balance
5. List of all account titles used by an enterprise/agency

a. Income statement
b. Chart of account
c. Balance sheet
d. Subsidiary ledger
ANSWER KEY 1-1
1. A
2. D
3. A
4. A
5. B
TASK SHEET 1.1-1

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
Title: PREPARE TRIAL BALANCE
Performance Objectives:Given the tools and materials you must post

transactions according to the procedures involved.
Supplies and Materials:

 Ledger form
 General Journal
 Pencil
 Eraser
 Ruler
 Bond Paper
Tools and Equipment:

 Calculator
 Pencil sharpener
 Stapler
Procedure:
1. List Account Titles.
2. Classify account titles according to assets, liabilities, capital, revenue
and expenses.
3. Transfer balances of accounts from the ledger in accordance with the
Chart of Accounts.
4. Summarize trial balance.
5. Debits and Credits are totaled with 100% accuracy.
6. Trial Balances are extracted 100% accuracy.
Assessment/Evaluation Method:
1. Lecture/Demonstration
2. Written Examination
3. Observation
PERFORMANCE CRITERIA CHECKLIST 1.1-1

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
Performance Standards Yes No N/A
1. List account Titles in accordance with Chart of

Accounts.
2. Transfer balances from the ledger in accordance

with Chart of Accounts
3. Summarize trial balance with 100% accuracy.
4. Extract Trial Balance with 100% accuracy
Remarks
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________
Trainer
REFERENCES
BOOKS

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA
Edwin G. Valencia, Gregorio F Roxas (2009-2010). Basic Accounting,
Concepts, Principles, Procedures and Applications 3 Edition.
rd
Edwin G. Valencia, Gregorio F Roxas, Darrel Joe O Asuncion (2009-2010)

Partnership and Corporation Accounting, 3rd Edition.
Conrado T. Valix & Jose F. Peralta (2004). Financial Accounting, Volume 1.

Bookkeeping NC III
May 29, 2013
Prepared by:
MARINA C PERIA

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HOW TO USE THIS

COMPETENCY- BASED LEARNING MATERIAL (CBLM)

Welcome to the competency-based learning material for the module:

Date Developed: Document No.

No. Unit of Competency Module Title Code

1 Journalize Transactions Journalizing Transactions HCS412301

2 Post Transactions Posting Transactions HCS412302

3 Prepare Trial Balance Preparing Trial Balance HCS412303

4 Prepare Financial Reports Preparing Financial Reports HCS412304

5 Review Internal Control System Reviewing Internal Control HCS412305

QUALIFICATION : BOOKKEEPING NC III

Date Developed: Document No.

MODULE TITLE : PREPARING TRIAL BALANCE

It is the transfer of the ledger accounts’ open balances to another

NOMINAL DURATION : 16 HOURS

SUMMARY OF LEARNING OUTCOMES:

SUMMARY ASSESSMENT CRITERIA:

2. Asset, liability, equity, revenue and expenses are transferred in

3. Debits and credits are totaled with 100% accuracy.

4. Trial balances are extracted with 100% accuracy.

PRE-REQUISITE: JOURNALIZE TRANSACTIONS& POST TRANSACTIONS

Learning Outcome 1 -LIST ACCOUNT TITLES

Date Developed: Document No.

Trainees must be provided with the following:

Supplies and materials:

Date Developed: Document No.

Date Developed: Document No.

Learning Activities Special Instructions

1.List Account Titles from

3. Assign account code

INFORMATION SHEET 1.1-1

Date Developed: Document No.

1. List account titles from the ledger.

LIST OF ACCOUNT TITLES FROM THE LEDGER

Ledger of Krystal Enterprises shows the following:

ACCOUNT TITLE CASH

1-Dec GJ 1 Initial Capital 300,000.00 300,000.00

3-Dec GJ 1 Collection of A/R 80,000.00 380,000.00

10-Dec GJ 1 Drawings 10,000.00 370,000.00

15-Dec GJ I Payment of A/P 50,000.00 320,000.00

31-Dec GJ I Paymnt of Salaries Exp 5,000.00 315,000.00

ACCOUNT TITLE: ACCOUNTS RECEIVABLES

DATE REMARKS REF PARTICULARS DEBIT CREDIT BALANCE

Date Developed: Document No.

5-Dec GJ 1 Sales on Account 110,000.00 30,000.00

ACCOUNT TITLE SERVICE VEHICLE

DATE REMARKS REF PARTICULARS DEBIT CREDIT BALANCE

ACCOUNT TITLE ACCOUNTS PAYABLE

DATE REMARKS REF PARTICULARS DEBIT CREDIT BALANCE

ACCOUNT TITLE KRYSTAL Enterprises, Capital

DATE REMARKS REF PARTICULARS DEBIT CREDIT BALANCE

1-Dec GJ 1 Initial Capital 300,000.00 300,000.00

ACCOUNT TITLE KRYSTAL, Drawing

DATE REMARKS REF PARTICULARS DEBIT CREDIT BALANCE

10-Dec GJ I Personal withdrawal 10,000.00 10,000.00

ACCOUNT TITLE ENTERPRISE REVENUE

DATE REMARKS REF PARTICULARS DEBIT CREDIT BALANCE

Date Developed: Document No.

ACCOUNT TITLE SALARIES EXPENSE

DATE REMARKS REF PARTICULARS DEBIT CREDIT BALANCE

31-Dec GJ 1 Payment of salaries 5,000.00 5,000.00

LO 2 – TRANSFER BALANCES FROM THE LEDGER