Trial Balance

A trial balance is a statement of debit and credit balance of the ledger accounts which is prepared in order to prove the arithmetical accuracy of the books of account. It is prepared after the preparation Journal Entry and posting them into ledger account. It is also called the summary of assets, capitals, liabilities, expenses, income, etc. drawn from the ledger account.

Objectives of preparing a trial balance.

1. To check arithmetical accuracy of ledger postings.
2. To check whether the transactions are posted according to the dual aspect or not.
3. To find out the errors.
4. To prepare the final account.

Advantages of trial balance.

1. It helps to prepare final accounts.
2. If any error is found, it can easily be rectified.
3. It helps in the internal audit by supplying complete, reliable and accurate accounting information.
4. It proves the authenticity of the balance sheet prepared by the business on the given date.
5. It proves the arithmetical accuracy of accounting entries in the ledger.

Format of Trial Balance

Rules :

Debit Side	Credit Side
Assets Losses Expenses Drawing	Capital Liabilities Gain Income and Revenues

Example1. Prepare a trial balance of Gauri Shankar Store, Charikot for the fiscal year 2068/2069 from the following particulars.

Particular	Amount	Particular	Amount
Opening Stock	5,70,000	Sales	6,80,000
Purchases	3,30,000	Purchase return	1,80,000
Commission received	11,000	Creditor	1,59,000
Depreciation	20,000	Wages	1,10,000

Solution:

Trial Balance of Gauri Shankar Store, Charikot.As on 31st Ashad 2069
S.No	Particular	L/F	Dr. Amount (Rs)	Cr. Amount (Rs)
1	Opening Stock		5,70,000
2	Sales			6,80,000
3	Purchase		3,30,000
4	Purchase Return			1,80,000
5	Commission Received			11,000
6	Creditor			1,59,000
7	Depreciation		20,000
8	Wages		1,10,000
	Total		10,30,000	10,30,000

Example2. Prepare a trial balance of Shyam and Company for the fiscal year 2067/2068 from the following particulars.

Particular	Amount	Particular	Amount
Capital	2,40,000	Salary	40,000
Purchases	2,45,000	Interest Received	15,000
Sales	1,50,000	Maintenance expenses	60,000
Furniture	50,000	Bad Debts	10,000

Solution:

Trial Balance of Shyam and Company, As on 31st Ashad 2068
S.No	Particular	L/F	Dr. Amount (Rs)	Cr. Amount (Rs)
1	Capital			2,40,000
2	Salary		40,000
3	Purchase		2,45,000
4	Interest Received			15,000
5	Sales			1,50,000
6	Maintenance expenses		60,000
7	Furniture		50,000
8	Bad Debts		10,000
	Total		4,05,000	4,05,000

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