Trial balance is a summary of all the debit and credit balances of ledger accounts. The total of debit side and credit side of trial balance should be matched. Trial balance is prepared on the last day of the accounting cycle.
Trial balance provides us a comprehensive list of balances. With the help of that, we can draw financial reports of an organization. For example, the trading account can be analyzed to ascertain the gross profit, the profit and loss account is analyzed to ascertain the profit or Loss of that particular accounting year, and finally, the balance sheet of the concern is prepared to conclude the financial position of the firm.
|
TRIAL BALANCE |
||||
|
S.No. |
Ledger Accounts |
L.F. |
Debit(Rs.) |
Credit(Rs.) |
|
1 |
ADVANCE FROM CUSTOMERS |
|
|
XX |
|
2 |
ADVANCE TO STIFF |
|
XX |
|
|
3 |
AUDIT FEES |
|
XX |
|
|
4 |
BALANCE AT BANK |
|
XX |
|
|
5 |
BANK BORROWINGS |
|
|
XX |
|
6 |
BANK INTEREST PAID |
|
|
XX |
|
7 |
CAPITAL |
|
|
XX |
|
8 |
CASH IN HAND |
|
XX |
|
|
9 |
COMMISSION ON SALE |
|
XX |
|
|
10 |
ELECTRICITY EXPENSES |
|
XX |
|
|
11 |
FIXED ASSETS |
|
XX |
|
|
12 |
FREIGHT OUTWARD |
|
XX |
|
|
13 |
INTEREST RECEIVED |
|
|
XX |
|
14 |
INWARD FREIGHT CHARGES |
|
XX |
|
|
15 |
OFFICE EXPENSES |
|
XX |
|
|
16 |
OUTSTANDING RENT |
|
|
XX |
|
17 |
PREPAID INSURANCE |
|
XX |
|
|
18 |
PURCHASES |
|
XX |
|
|
19 |
RENT |
|
XX |
|
|
20 |
REPAIR AND RENUWALS |
|
XX |
|
|
21 |
SALARY |
|
XX |
|
|
22 |
SALARY PAYABLE |
|
|
XX |
|
23 |
SALE |
|
|
XX |
|
24 |
STAFF WELFARE EXPENSES |
|
XX |
|
|
25 |
STOCK |
|
XX |
|
|
26 |
SUNDRY CREDTIORS |
|
|
XX |
|
27 |
SUNDRY DEBITORS |
|
XX |
|
|
|
TOTAL |
|
XXXXX |
XXXXX |