FA MODULE 5: THE TRIAL BALANCE

LECTURE 1: The Summarizing Process

The summarizing process is the first in a series of steps done at the
end of the accounting period. During the summarizing process, the trial
balance is using the ending account balance in the general ledger. The trial
balance is an accounting report prepared at the end of the accounting period
that shows the account titles and their corresponding balances with the total
debit column amount equal to the total credit column amount. The trial
balance shows the equality of debit total and credit total.
The heading of the trial balance shows the name of the business on
the first line, the title of the report (trial balance) on the second line, and the
date of the trial balance on the third line.
Trial Balance
 an accounting report prepared at the end of the accounting period
 shows the account titles and their corresponding balances
 shows the equality of debit total and credit total
 total debit column amount should equal to the total credit column
amount
Parts of the Heading of the Trial Balance
 1st Line. Name of the business
 2nd Line. Title of the report
 3rd Line. Date of the report

LECTURE 2: Steps in the Preparation of Trial Balance

1. Copy the account titles and the corresponding balances from the
general ledger.
2. Add the amounts in the debit and credit columns.
3. The total for both columns must be equal.

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FA MODULE 5: THE TRIAL BALANCE
NOTE:
 Accounts with zero balances are not shown in the trial balance.
 Only the ones with balances are reflected in the trial balance.
LECTURE 3: Types of Trial Balance
At the end of the accounting period, three types of trial balance are
prepared, based on the timing when they are done.
The unadjusted trial balance is prepared after all general journal
entries have been posted to the general ledger. The preparation of the trial
balance is the first step done at the end of the accounting period. The trial
balance provides the initial balance in the worksheet.
The adjusted trial balance is prepared after all adjusting
entries/adjustments have been recorded in the general journal and posted in
the general ledger, incorporating the effect of the adjustments in the affected
accounts. The adjusted trial balance provides the information used in the
preparation of the financial statements (the income statement, equity
statement, balance sheet, and statement of cash flows).

The post-closing trial

balance, also called the after-
closing trial balance, is prepared
after all closing entries have been
recorded in the general journal
and posted in the general ledger.
It contains only the balance sheet
or permanent accounts (assets,
liabilities, and capital). The post-
closing trial balance provides the
beginning balance of the
accounts for the next accounting
period.