Trial Balance
Prepare and interpret a trial balance
The Trial Balance
A trial balance lists all ledger accounts with their balances — debits in one column, credits in another. The two columns must be EQUAL (total debits = total credits). This checks mathematical accuracy — if they don't balance, there's an error somewhere in the books.
Example
Trial Balance Example
Trial Balance as at 28 February:
Account | Dr | Cr
Bank | R29 000 |
Equipment | R15 000 |
Stock | R8 000 |
Capital | | R50 000
Sales | | R5 000
Rent | R3 000 |
Total | R55 000 | R55 000 ✓ (Balanced!)
Note
Remember
A balanced trial balance does NOT mean everything is correct — some errors won't show (like posting to the wrong account). But if it doesn't balance, there IS definitely an error. Always prepare a trial balance before financial statements.
Key Vocabulary
Trial balanceA list of all account balances to check that debits equal credits
BalanceThe difference between debit and credit totals in an account
ErrorA mistake in recording or calculating
VerifyTo check that something is correct
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Trial balance
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