• Program Name- MBA

• Course Name- Managerial Accounting

• Unit No.- 01 and 02

• Unit Name- Basic Concepts and Final Accounts

• Trial Balance
• A statement in which the balances of all the
ledgers are compiled into Debit and Credit
columns
• It is prepared at the end of every reporting
period
• Usually at the end of Financial Year
• To check Mathematical Accuracy of Accounts

• Accounting Process-
• Journal
• Ledger
• Balancing of Ledgers
• Preparation of Trial Balance
• Debit Side- Assets and Expenses

• Credit Side- Liabilities, Capital and Incomes

Accounts
• Debit Balances and Credit Balances must be
equal if-

• All accounting entries are recorded accurately

• All ledger balances are correctly extracted
• Trial Balance-
• It includes list of all ledger accounts
• It can be prepared at any time during the
entire accounting period
• Checks arithmetical correctness of Ledger
Posting
• It is an instrument to check and test
arithmetical precision of Ledger Posting
• Trial Balance-
• It helps in detecting accounting errors

• It summarizes accounting transactions

• It provides basis for preparing Final Accounts

• Final Accounts-
• They are prepared with the objective of
providing a precise summary of the profits
made during a particular year and the
financial position of the business as on
particular date
• Also known as Financial Statements
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