PRESENTATION ON

TRIAL
BALANCE AND
ITS IMPORTANCE
LEARNING OBJECTIVE
At end of this presentation you should be
able to answer-
*What is TRIAL BLANCE
*How the posting is done in TRIAL BLANCE
*Preparation of TRIAL BALANCE
*Importance of TRIAL BALANCE
 TRIAL BALANCE

A statement showing the extract of the

balances, either credit or debit of various
account in the ledger.
A trial balance is a summary statement
prepared at the end chosen financial year.
PERFORMA OF TRIAL BALANCE

PARTICULARS AMOUNT AMOUNT

(Dr) (Cr)
 METHODS OF
PREPARING TRIAL
BALANCE
Totals method- In case of this method, the
totals of debit and credit of the accounts are
shown in the trial balance. Trial balance is
prepared before ledger accounts are balanced
the total of debit and credit columns of the
trial balance must be equal. This method is
not popular.
Balance Method- In this method, the
balances of ledger accounts are shown in
the respective debit and credit columns of
the trial balance. The total of the balance
of the debit column must be equal to the
total balance of the credit column. This is
the most common method of preparing a
trial balance.
IMPORTANCE OF TRIAL
BALANCE

Trial Balance helps in checking the

arithmetical accuracy of the accounting
entries.
Trial Balance is the basis for preparation
of financial statement
The entire ledger is summarized in the
form of a Trial Balance
KEY TERMS
Ledger- A book containing different
accounts of an entity.
Posting- Transferring the debit and credit
items from the Journal to the respective
accounts in the Ledger.
CONLUSION
At the end we came to know that a
statement containing the various ledger
balances on particular date is known as
TRIAL BALANCE.
TRIAL BALANCE very important for the
completion of financial statement.
By; Nayan Trivedi
P.G.D.M. Ist sem.