Trial Balance - is a list of all accounts with their respective debit or credit

balance.

Preparation of a trial balance follow:

1. List the account titles in numrical order

2. Obtain the account balance of each account from the ledger and enter the debit
colum and the credit balance in the credit column.
3. Add the debit and credit columns.
4. Compare the totals

The trial balance is a control device that helps minimize accounting errors. When
totals are equals, the trial balance is in balance. If not equal, it does not
count.

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- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - -

Account Codes - is a series of characters used to identify a client, which might be

an individual customer or a corporate entity.

Cash [110]
Gev, Capital [310]
Prepaid rent [140]
N/P [210]
Util. Payable [240]
Serv. Vehicle [160]
Pre. Ins [150]
A/R [120]
Off. Eqmpt [170]
A/P [220]
Supplies [130]
Cons. Rev. [410]
Sal. Exp [510]
Unearned R.R. [260]
Gev, W/Drawals [320]
Util. Exp [550]

What if there is no account code given? We sort by current asset, non-current

assest, current liability, non-current liability, equity accounts, income account,
and expense accounts.

Now we list and sort all account code.

[110] Cash
[120] A/R
[130] Supplies
[140] Pre. Rent
[150] Pre. Insurance
[160] Serv. Vehicle
[170] Off. Equipment
[210] N/P
[220] A/P
[240] Utilities Payable
[260] Unearned Ref. Revenues
[310] Gevera, Captial
[320] Gevera, W/Drawals
[410] Consulting Revenues
[510] Salaries Expense
[550] Utilites Expense

And now, we must check if the balance is equal.

Wedding "R" us
Trial Balance
May 31, 2019
Debit Credit
[110] Cash 22.2K
[120] A/R 12K
[130] Supplies 18K
[140] Pre. Rent 8K
[150] Pre. Insurance 14.4K
[160] Serv. Vehicle 420K
[170] Off. Equipment 60K
[210] N/P 210K
[220] A/P 53K
[240] Utilities Payable 1.4K
[260] Unearned Ref. Revenues 10K
[310] Gevera, Captial 250K
[320] Gevera, W/Drawals 14K
[410] Consulting Revenues 62.4K
[510] Salaries Expense 13.8K
[550] Utilites Expense 4.4K
- - - - - - - -
586,800 586,800

We completed our trial balance, but it doesn't mean our debit is always equal to
credit. There are some situations that Debit and Credit is balance, but there is
errors.