TOPIC 4: TRIAL BALANCE (the format)

Trial Balance

• Is prepared either at the end of month or at the end of accounting period, but normally the trial balance is drawn up at the end of accounting period (which is before preparing an income statement and balance sheet).
• The purpose of preparing the trial balance is to ensure the matching of credit entry with every debit entry (double entry system) was applied in the previous preparation of ledger entries. Due to this, you must make sure that you get a same amount of totals on both the debit and credit side of your trial balance!
• The amount of each accounts recorded in the trial balance is earn from the balances of each accounts prepared earlier.
• Following is the format of trial balance that you must memorize!

    
         

	Trial Balance as at ………
			Debit	Credit
			(RM)	(RM)
	Assets		xxx
	Liabilities			xxx
	Capital			xxx
	Drawings		xxx
	Purchases		xxx
	Sales			xxx
	Revenues			xxx
	Expenses		xxx
	Return Inwards		xxx
	Return Outwards			xxx
	Beginning Stock		xxx
			XXX	XXX