Module 1: THE TRIAL BALANCE

Time Allotment: January 23- 27,2023

The T Account is used by accountants to analyze transactions and

immediately determine balances of accounts. There is however a formal
book of accounts which is used in actual practice called the general
ledger wherein a separate page is maintained for each account. After
posting all the journal entries, trial balance can now be made. The trial
balance is a list of all accounts with their respective debit or credit
balances. It is prepared to verify the equality of debits and credits in the
ledger at the end of each accounting period or at any time the postings
are updated.

Objectives

At the end of the module, you are expected to:

A. define a trial balance completely;
B. enumerate the contents of a trial balance and its importance;
C. explain the procedures in preparing a trial balance; and
D. prepare a trial balance using the procedures in the preparation of a trial balance.

Lesson Proper

Trial Balance

A trial balance is a list of accounts with ledger balances. Assets, owner’s drawing
and expenses have normal balances on the debit side while liabilities, owner’s capital
and revenue have normal balances on the credit side.

A sample trial balance is seen in the excel file entitled, “Del Mundo
Landscape Specialist”
For the in-depth discussion of the trial balance, open your book on pages
150-151. Take note of the salient features of each procedure to make a correct
trial balance.
 Activity

Answer problem 12 on page 181 of your textbook. Write your

answer in your accounting notebook.

References

Win Ballada, CPA, CBE, MBA (2022). Fundamentals of Accountancy,

Business, and Management 1. DomDane Publishers & Made Easy
Books. Pages 150-151.