Trial Balance

Trial Balance: A trial balance is a list of accounts and their balances at a

given time. The trial balance proves the mathematical equality of debits
and credits column after posting.
Steps of preparing trial balance:
1. List the account titles and their balances in the appropriate debit or
credit column.
2. Total the debit and credit columns.
3. Prove the equality of the two columns.
For preparing a trial balance we need a general ledger.
Taking the example of general ledger of pioneer advertising:
 Trial Balance

From the ledger we can see the accounts final balance. They are:
Cash: $15200 Unearned Service Revenue: $1200
Supplies: $2500 Owner’s Capital: $10000
Prepaid insurance: $600 Owner’s Drawings: $500
Equipment: $5000 Service Revenue: $10000
Notes Payable: $5000 Salaries and Wages Expense: $4000
Accounts Payable: $2500 Rent Expense: $900

From Accounting Equation: Assets= Liabilities + Owner’s Equity

 Trial Balance
Pioneer Advertising
Trial Balance
October 31, 2017
Particulars Debit($) Credit($)
Cash: 15,200
Supplies 2,500
Prepaid insurance 600
Equipment 5,000
Notes Payable 5,000
Accounts Payable 2,500
Unearned Service Revenue 1,200
Owner’s Capital 10,000
Owner’s Drawings 500
Service Revenue 10,000
Salaries and Wages Expense 4,000
Rent Expense 900

Total 28,700 28,700