Cambridge IGCSE and O Level Accounting

1.3 Introducing trial balances

Syllabus reference: 3.1
Learning aims: 1 understand that a trial balance is a statement of ledger balances on
a particular date
2 outline the uses and limitations of a trial balance
3 prepare a trial balance from a given list of balances
4 identify and explain those errors which do not affect the trial
balance – commission, compensating, complete reversal, omission,
original entry, principle
Prior knowledge: Double entry and balancing ledger accounts
Resources: Coursebook Chapter 3
Workbook Part 2 Section 1 Multiple choice questions 7–9
Workbook Part 2 Section 1 Structured questions 14–15
Worksheet 1.3
You will also need:
PowerPoint, slide or handout of table showing classification of balances
for the preparation of a trial balance
Handout giving lists of balances for preparation of trial balances
PowerPoint, slide or handout listing transactions which do not affect the
1
balancing of a trial balance
Flashcards on errors not revealed by a trial balance

Suggested activities
1 Share the learning aims and outcomes with the students and write on the board or use
a pre-prepared slide or PowerPoint
2 Explain to class what a trial balance is and why it is used
Re-visit prior learning on balancing ledger accounts. Explain that a trial balance is a list of the
balances on the accounts in the ledger at a certain date.
3 Teacher-led discussion about the balances on the accounts in the ledger at a certain date
Ask students to look at a previous double entry exercise completed in class. Discuss the
balances shown on these accounts and build up a list on board/flipchart/slide/PowerPoint
using two columns (debit and credit). This can be developed into a table of how to classify
account balances in the trial balance (a pre-prepared slide, PowerPoint or handout is useful).
4 Preparation of a trial balance
Using a pre-prepared list of balances or ledger accounts from double entry exercise completed
last lesson, prepare a trial balance as a class exercise.
5 Practical exercise as follow-up
Students to prepare a trial balance from a given list of balances on handout.

© Cambridge University Press 2018

Cambridge IGCSE and O Level Accounting

6 Teacher-led discussion about errors which do not affect the trial balance
Use handout, slide or PowerPoint to provide an example of each type of error that does not
affect the balancing of the trial balance.
Introduce students to mnemonics as an aid to remembering the errors not affecting the
balancing of a trial balance (e.g. COCROP and POORCC).
Encourage students to commit the names of these errors to memory.
7 Use of flashcards on trial balance errors
Flashcards with errors listed on them could be used and students asked to identify the type
of error.
8 Practical exercise as follow-up
This can be undertaken either as part of this lesson (if time permits) or in next lesson.
Students prepare more difficult trial balances.
9 Follow-up in next lesson
Introduction of more difficult exercises such as trial balances with missing figures and trial
balances with items in incorrect positions.
Trial balances prepared at this stage should be saved as they may be used in future lessons in
preparation of financial statements.
Tasks for more confident students could include:
1 Working in pairs students could prepare examples of errors and to ask each other to name
the type of error.
2 Elementary consideration of how some errors may be corrected.
10 Homework (or class work at start of next lesson)
Worksheet 1.3
2

© Cambridge University Press 2018