BOOKKEEPING 9

Name: ___________________________ Learning Module 8

Gr.& Section: _____________________
FIRST QUARTER

What is this module all about?

The following topics are included in this module:
(1) Trial Balance
(2) Preparation of Trial Balance

What do you need to learn?

In this module, you are expected to meet the following competencies:
(1) Demonstrate understanding regarding the definition and uses of trial balance in the
accounting cycle.
(2) Identify the uses of trial balance.
(3) Construct a trial balance

Pre-test
A. Multiple Choice
Directions: Read each item carefully and choose the letter of the correct answer. Write your
answer on the space provided before the number.

______ 1. Which of the following includes accounts such as asset accounts and expense accounts?
a. Asset c. debit
b. credit d. liabilities
______ 2. Which of the following includes accounts such as income, equity, and liabilities?
a. Asset c. debit
b. credit d. liabilities
______ 3. Which of the following refers to the list of all the general ledger accounts?
a. balance sheet c. income statement
b. capital statement d. trial balance
______4. Which of the following happens when a transaction is recorded?
a. There is a credit entry.
b. There is a debit entry.
c. There is a debit and a credit of equal amount.
d. There is no effect in the accounting cycle.
______5. Which of the following refers to the use of trial balance in the accounting cycle?
a. It is used in computing the capital and drawing.
b. It is used in listing the assets and the liabilities.
c. It is used in the preparation of the worksheet and the periodic statements.
d. It is used in recording a transaction.

Refer to the Answer Key on the last page of this module to check your answers.

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 Day 1: Trial Balance (Synchronous Session)

Concept Notes:
➢ Preparing a trial balance for a company serves to detect any Mathematical errors which may occur
in the double-entry accounting system. The purpose of a trial balance is to ensure that all entries
made into an organization's general ledger are properly balanced.
➢ Trial balance is a listing of the ledger accounts and their debit or credit balances to determine that
debits equal credits in the recording process.
• Each transaction is recorded; there is a debit and a credit of equal amount.
• On the trial balance the accounts should appear in this order: assets, liabilities, equity,
dividends, revenues, and expenses.
• It is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit
and credit account column totals that are equal.

The trial balance of Si Law Office is presented below as an example:

SI LAW
OFFICE
TRIAL
BALANCE
July 31, 20
Accounts Debit Credit
Cash ₱15,300
Office Supplies 5,000
Office Equipment 10,000
Accounts Payable ₱10,000
Andrea Si, Capital 20,000
Andrea Si, Drawing 1,000
Professional Fees 2,800
Salary Expense 1,500
Total ₱32,800 ₱32,800

Uses of Trial Balance

1. Serves as the preparation of the worksheet and the periodic statements such as balance sheet,
income statement, and capital statement
2. Proves the mathematical correctness of the ledger or the equality of the debit and credit entries
3. Serves as evidence of the double entry accounting system

Exercise No. 8.1

Directions: Read and answer the following questions. Write your answer on the space provided
below. Be guided by the given rubrics.

1. What is a trial balance? Give its definition in your own words.

_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
2. What are the uses of trial balance?

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 _______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

3. Is it considered a correct trial balance if one transaction is missing in the ledger? Explain your
answer briefly.
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
Rubrics:
CRITERIA 4 3 2 1
Content Gave clear Gave clear answer Gave clear answer / Failed to give clear
answer / / explanation and explanation, but answer /
explanation and it showed neatness there were erasures. explanation but
showed very neat of work. showed effort.
work.

Day 2: Asynchronous Activities

Activity No. 8.1

Time started: ______
Time finished: ______

Directions: On a long bond paper, create a concept map that defines a trial balance and its uses. Be guided
by the given rubric.

Anchors 5 points 4 points 3 points 2 points 1 point

The output The output is The output The output The ideas
shows remarked very shows shows a little needed are
excellence with well which complete completeness not
regard to the shows information in the complete at
Content
completeness of completeness and ideas presented all.
essential of information needed. ideas.
information presented.
needed.
The output The output is The output The output at The ideas in
shows remarked very shows unity in least shows the output
excellence with well as unity of terms of the unity in the shows no
regard to the the message of ideas message or unity at all.
Coherence unity of the the output or presented. presentation.
message of the presentation
output or that is visible.
presentation that
is highly visible.
The output The output is The output The output The output
shows remarked very shows shows shows no
Creativity excellence with well in terms of creativity and minimum creativity at
regard to the the creativity cleanliness in creativity and all.
very evident and cleanliness
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 creativity and of the output or satisfying cleanliness in
cleanliness of presentation. ways. some ways.
the output or
presentation.

Day 3: Preparation of Trial Balance (Synchronous Session)

Concept Notes:

➢ In preparing a trial balance, there is a need for the closing balances of the general ledger accounts.
• It is prepared after posting all financial transactions to the journals and summarizing them
on the ledger statements.
• It is made to ensure that the debits equal the credits in the chart of accounts.

There are five (5) steps to prepare a trial balance. These are as follows:

1. Ensure that every ledger account is balanced. The difference between the sum of all the debit
entries and the sum of all the credit entries provides the balance.
2. Prepare an eight-column worksheet. The column headers should be for the account number,
account name and the corresponding columns for debit and credit balances.
3. For every ledger account, transfer the account number and account name along with the account
balance in the appropriate debit or credit column to the trial balance worksheet.
4. Add up the amounts of the debit column and the credit column. The totals should be the same in
an error-free trial balance. When the totals are same, you may close the trial balance.
5. If there is a difference, accountants have to locate and rectify the errors.

Here are some possible errors in the trial balance:

• Entries have been made twice.
• Omission of entries
• Entries have been made to the wrong account.
• Transposition of error
• A mistake in transferring the balances to the trial balance
• The wrong account is posted in the ledger.
• Made the entry in the wrong column (e.g., debit instead of credit or vice versa)

Exercise No. 8.2

Directions: Read and answer the following questions. Write your answer on the space provided
below. Be guided by the given rubrics.

1. What is needed to have prior to the preparation of the trial balance?

_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
2. Who can locate errors in the trial balance?
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
3. Is it alright to have certain errors in a trial balance? Explain briefly.
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

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Rubrics:
CRITERIA 4 3 2 1
Content Gave clear Gave clear answer Gave clear answer / Failed to give
answer / / explanation and it explanation, but clear
explanation and showed neatness there answer /
showed very neat of were erasures. explanation
work. work. but showed effort.

Day 4: Asynchronous Activities

Activity No. 8.2

Time started: ______
Time finished: ______

Directions: On a long bond paper, summarize the steps in preparing a trial balance using a graphic
organizer. Be guided by the given rubric.

Anchors 5 points 4 points 3 points 2 points 1 point

The output shows The output is The output The output The ideas
excellence with remarked very shows shows a little needed are
regard to the well which shows complete completeness not
Content completeness of completeness of information in the complete at
essential information and ideas presented all.
information presented. needed. ideas.
needed.
The output shows The output is The output The output at The ideas in
excellence with remarked very shows unity least shows the output
regard to the unity well as unity of in terms of unity in the shows no
Coherence of the message of the message of the ideas message or unity at all.
the output or the output or presented. presentation.
presentation that is presentation that
highly visible. is visible.
The output shows The output is The output The output The output
excellence with remarked very shows shows shows no
regard to the very well in terms of creativity minimum creativity at
Creativity evident creativity the creativity and and creativity and all.
and cleanliness of cleanliness of the cleanliness cleanliness in
the output or output or in satisfying some ways.
presentation. presentation. ways.

Day 5: Synchronous Session

Post Test

Directions: Classify each of the following accounts as asset, liability, capital, drawing, revenue, or expense
and indicate increases or decreases for debit and credit. Then, identify the normal balance of
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 each account. The first one is done for you.

Account Debit Credit Normal Balance

1. Accounts Payable Liability Decrease Increase Credit
2. Rent Expense
3. C. Reyes, Drawing
4. Salary Expense
5. Accounts Receivable
6. Land
7. Office Supplies
8. E. Marquez, Capital
9. Notes Payable
10. Cash

CONGRATULATIONS!
You have successfully accomplished your eighth module!
I hope you have gained all the learning competencies on this module. Good job, Batang DICES!

Self-check
Here are the answers in the Pre-test. Please look at this part only after accomplishing the module and the
tests included. Remember, be honest! Please check your answers and determine how much knowledge you
have attained. Then, you may go back to answering the rest of this module.
5. C
4. C
3. D
2. B
1. C
Pre-Test

How many items did you get correctly?

Let’s now continue with our lessons to better understand the topics.

References
Fundamentals of Accounting

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