TRIAL BALANCE

What is Trial Balance?

It’s a list of balances in an account for a certain date,this is the preparation of your
financial statements.Assets and expenses appear only at the debit side while the capital
and income accounts used to be at credit side.When your entries are all correct,the total
of it’s debit will appear in the trial balance and we must equal to the sum of those credit
balances,in other terms for me,this is your first step in the making of Financial
Statements.

Examples below will see how Trial Balance was done correctly.

Iverson Company
Trial Balance
(September, 2018)

DEBIT CREDIT
Cash 1,550,000
Accounts Receivable 450,000
Equipment 500,000
Supplies 620,000
Fixture and Furniture 650,000
Automobile 2,500,000
Accounts Payable 3,530,000
Iverson Capital 6,000,000
Prepaid Insurance 550,000
Wages Expense 600,000
Supplies Expense 1,000,000
Rent Expense 3,250,000
10,600,000 10,600,000