4.6 The Trial Balance
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VCE Accounting Unit 3. Video of this presentation can be found on my YouTube channel here https://www.youtube.com/channel/UCf5jyuJoYwie8tWfvjEc0zg.
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4.6 The Trial Balance
- 2. Video of this presentation at… YouTube Channel for VCE Accounting
- 3. © Michael Allison. Author’s permission required for external use. At the end of the period a Trial Balance must be prepared which lists the balances of every ledger account at a certain date 4.6 THE TRIAL BALANCE Trial Balance • A list of General Ledger accounts with their balances. • Used to check the total of all debit entries equals the total of all credit entries.
- 4. © Michael Allison. Author’s permission required for external use. Trial Balance as at 31 March 2015 List of all accounts with a… List of all accounts with a… DEBIT Balance CREDIT Balance Trial Balance as at 31 March 2015 List of all accounts with a… List of all accounts with a… DEBIT Balance CREDIT Balance Trial Balance as at 31 March 2015 List of all accounts with a… List of all accounts with a… DEBIT Balance CREDIT Balance 4.6 THE TRIAL BALANCE
- 5. © Michael Allison. Author’s permission required for external use. The DEBIT and CREDIT Balances of the ledgers are transferred to the Trial Balance The General Ledger Ledger Ledger Ledger Ledger Ledger Ledger Ledger Ledger Trial Balance as at 31 March 2015 $ $ Ledger Ledger Trial Balance as at 31 March 2015 DEBIT Balances $ $ Trial Balance as at 31 March 2015 DEBIT Balances $ $ Cash at Bank 10000 Stock 25000 Wages 3000 Rent 15000 53000 Trial Balance as at 31 March 2015 DEBIT Balances $ CREDIT Balance $ Cash at Bank 10000 Creditors 2000 Stock 25000 GST Liability 1500 Wages 3000 Accrued wages 1000 Rent 15000 Loan – NAB 4000 Sales 21000 Capital 23500 53000 53000 Trial Balance as at 31 March 2015 DEBIT Balances $ CREDIT Balance $ Cash at Bank 10000 Stock 25000 Wages 3000 Rent 15000 53000 4.6 THE TRIAL BALANCE
- 6. © Michael Allison. Author’s permission required for external use. One of the benefits of the Trial Balance is that it allows you to check if: Thus, a Trial Balance assists the firm in its Internal control – the practices involved to ensure that • Accounting records and reports are accurate and reliable • The firm’s Assets are protected from theft, fraud and misrepresentation DEBITS CREDITS= 4.6 THE TRIAL BALANCE
- 7. © Michael Allison. Author’s permission required for external use. TASK In-class Homework SQ8 X SQ9 X