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ACCOUNTANCY
MODULE - 2
Notes
Trial Balance
Trial Balance and Computers
184
Whenever you attempt a question in arithmetic you try to verify whether
your answer is correct or not. If you attempt to solve any other type of
problem you want to ensure that it has been correctly solved. For this you
try to find out some ways or means. Similarly an accountant also wants to
be sure that the ledger accounts he/she has prepared are correct in respect
of amount, side, balance, etc. To check the accuracy of posting in the ledger
a statement is prepared. This statement is called Trial Balance. You also
know that accounts are prepared by applying double entry system. According
to this system every debit of a transaction has corresponding credit for the
same amount. Hence the total of debit balances of different accounts in the
ledger must be equal to the total of the credit balances in the remaining
accounts, provided transactions have been correctly posted in the ledger.
A statement is prepared containing these balances with two columns i.e.
debit column containing debit balances and credit column containing credit
balances and the debit column total is compared with credit column total.
If the columnar totals are same it implies that ledger accounts are
arithmetically accurate.
In this lesson, you will learn about meaning, objectives and preparation of
Trial Balance.
OBJECTIVES
After studying this lesson you will be able to :
l state the meaning of Trial Balance;
l explain the objectives of preparing Trial Balance
l prepare a Trial Balance as per the format;
l identify the need for a Suspense A/c in case the Trial Balance does not
tally;
l infer the possibility of errors even if the Trial Balance tallies.
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TRIAL BALANCE