Preparing Trial Balance

Trial Balance is a diagnostic tool. It acts as a

first line of defense against misrecording (in
the journal) and misposting (in the ledger).
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.
 STEPS IN PREPARING TRIAL BALANCE
1. Write the heading (Name of business, Word
trial Balance, date)
2. List the account titles in numerical order
3. Obtain the account balance from the ledger
and enter the debit balances in the debit
column and the credit balances in the credit
column
4. Prepare the totals
 Wedding R Us
Trial Balance
May 31, 2017
Cash P404 000
Equipment P 600 000
Furniture P50 000
Account Receivable
Service Revenue P 54 000
Capital _______ P1000000
Total P1054000 P1054000
 Lets do this together
Analyze the following transactions of Dr. Who
clinic, a sole proprietorship. Record the
transaction in journal and post it in a ledger then
prepare a trial balance.

Jan 1, Dr. Who invested P100 000 into the

bus.
Jan 3, Dr. Who paid P7 500 to city hall for
business permit
Jan 5, Dr. Who paid P 10 000 for one-year
insurance
Jan 10, Purchased computer equipment
amounting to P20 000 for the clinic.
Jan 11, Dr. Acquired furniture and fixture on
account amounting to P15 000
Jan 15, Dr. Who borrowed P 30 000 from the
bank by signing a note.

Jan 17, Dr Who rendered professional service to

various patient and received P35 000
 Jan 20, Dr.Who rendered professional service to
various patients. The total bill of these patients
amounted to P 21 000. These patients had no
cash with them and promised to pay Dr. Who on
January 30.

Jan 30, Dr. Who collected P21,000 with various

patients in entry #8
Jan 31, Dr. Who paid P10 000 for rent, P 2500
utilities and P 15 000 for salaries.
Jan 31, Dr. Who withdrew P 3000 for his personal
use