LIST ACCOUNTS TITLE IN PREPARATION TO TRIAL BALANCE

The trial balance is a control device that helps minimize accounting errors. When the totals
are equal, the trial balance is in balance. This equality provides an interim proof of the
accuracy of the records but it does not signify absence of errors. For example, if the
bookkeeper failed to record payment of rent, the trial balance columns are equal but in reality,
the accounts are incorrec since rent expense is understated and cash is overstated.

TRIAL BALANCE
It is a list of all accounts with their respective debit or credit balances. It is prepared to
verify the equality of debits and credits in the ledger at the end of each accounting period or at
any time postings are updated.

The procedures in the preparation of trial balance follow:

1. List all the account titles in numerical order.

2. Obtain the account balance of each account from the ledger and enter the debit balances
in the debit column and the credit balances in the credit column.
3. Add the debit column and credit column.
4. Compare the totals.
5. The balance of debit and credit should be balance.

Locating Errors
An equality in the totals of the debit and credits would automatically signal the presence
of an error. These errors include:

1. Error in posting a transaction to the ledger:

 An erroneous amount was posted to the account.
 A debit entry was posted as a credit or vice versa.
 A debit or credit posting was ommitted.

2. Error in determining the account balances:

 A balance was incorrectly computed.
 A balance was entered in the wrong balance column.

3. Error in preparing the trial balance:

 One of the columns of the trial balance was incorrectly added.
 The amount of an account balance was incorrectly recorded on the trial balance.
 A debit balance was recorded on the trial balance as a credit or vice versa, or a
balance was ommited entirely.
From the balance we have in Posting to Ledger the answer we got (the one with
color) we make our Trial Balance.

Trial Balance

Particulars Debit Credit

Cash P284,250.00
Merchandise Inventory 50,000.00
Supplies 3,000.00
A. Capital P350,000.00
Purchases 69,200.00
Accounts Payable 15,000.00
Purchase Return and Allowances 2,500.00
Purchase Discount 150.00
Accounts Receivable 0
Sales 62,000.00
Salaries and Benefits 20,000.00
Sales Discount 1,200.00
Sales Return and Allowances 2,000.00 ________

Total P429,650.00 P429,650.00

 SELF CHECK 3.3.1

PREPARE TRIAL BALANCE FOR ABC CORPORATION(JUNE,30__)

Cash P346,000.00
Facilities and Equipment 20,000.00
Cruz, Capital 200,000.00
Notes Payable 150,000.00
Purchases 73,000.00
Accounts Payable 18,000.00
Accounts Receivable 50,000.00
Sales 140,000.00
Supplies 1,500.00
Freight out 500.00
Sales Discount 500.00
Purchase Return 1,400.00
Purchase Discount 380.00
Salaries and Benefit 10,000.00
Freight – In 400.00
Sales Return and Allowances 800.00
Cruz, Drawing 2,000.00
Electric and Water Expenses 2,000.00
Rmt Expense 3,000.00
 ANSWER KEY 3.3.1

ABC Corporation
Trial Balance
For the month of June 30, 20____

Particulars Debit Credit

Cash P346,080.00
Cruz, Capital P200,000.00
Furniture and Equipment 20,000.00
Notes Payable 150,000.00
Purchases 73,000.00
Accounts Payable 18,000.00
Accounts Receivable 50,000.00
Sales 140,000.00
Supplies 1,500.00
Freight – Out 500.00
Sales Discount 500.00
Purchase Return 1,400.00
Purchase Discount 380.00
Salaries and Benefit 10,000.00
Freight – In 400.00
Sales Return and Allowances 800.00
Cruz, Drawing 2,000.00
Electric and Water Expenses 2,000.00
Rent Expense 3,000.00 __________

TOTAL P509,780.00 P509,780.00

 TASKS SHEET 3.3.1

Title: LIST ACCOUNTS TITLE IN PREPARATION TO TRIAL BALANCE

Performance Objective: The learners will list all accounts title used in journal entries then
post to general ledger then make a list of all accounts title used.
Supplies/Materials : Ball pen, Yellow paper
Equipment : Computer and calculator

STEPS OR PROCEDURE:

1. Analyze the transactions carefully.

2. Prepare your journal entries.
3. Be sure you have the same amount posted in your debit entry as well as with your credit
entry.
4. Prepare your table needed for your general ledger.
5. Post all your accounts title used in your journal entries to your general ledger.
6. Be sure to put explanation on each entry.

Assessment Method:
Portfolio
Oral Questioning

Trainer’s Signature

Mrs. Imelda C. Antonio

Instructor

Trainee’s Signature

Mikaella B. Santos
____________________
Trainees

30 June 2021
Date: ____________________
 PERFORMANCE CRITERIA CHECKLIST 3.3.1

Criteria
Did you…. Yes No

Analyze every transactions carefully? ✓

Have your debit entry amount the same with your credit entry? ✓

List all the accounts title you used in your general ledger? ✓

Post correctly to your general ledger all the accounts title you used? ✓

Have a running balance on each accounts title in general ledger? ✓

Trainer’s Signature

Mrs. Imelda C. Antonio

Instructor

Trainees Signature

Mikaella B. Santos
____________________
Trainees

30 June 2021
Date: _______________