Describe the

purpose of
preparing trial
balance and its
function in
accounting
record system

Prepare
closing and
balance off
the T-account

Produce the
trial balance

TRIAL BALANCE

Statement prepare based on account balances in the

ledgers at the end of an accounting period
All accounts with debit balances will be listed in the
debit side while accounts with credit balances will
be listed in the credit side
The total debit amount must be equal to the total
amount
if the total amounts are not balanced or not equal,
this means that errors or mistakes occurred when
entries were made into the accounts.

Check the accuracy of calculations

Verify the accuracy of double entries
Verify the accuracy of posting from the
book of original entry to ledgers
Prepare financial statement

Prepared by listing all

ledger account names
their balances in the
debit and credit
columns according to
the balances types

Account balance

Debit

Credit

Listed
to

Column
(Trial Balance)
Debit

Types of accounts

Credit
Assets
Expenses

Capital
Liabilities
Revenues

The total of the debit side of the trial balance: must be equal to the total of the credit side, or
in the other word, it must be balanced

Total debit
side
(Amount)

Total credit
side
(Amount)

Assets

300

Expenses

500

Capital

250

Liabilities

150

Revenues

400
800

800

The trial balance total amount will be the same

The following is obtained from

the accounting from accounting
records of Armel Company. The
ledger are to be balanced and a
trial balanced is prepared in Tformat and in statement format.

Capital Account

Capital
Account

2005
Mar 31

Balanced c/d

RM

2005

5,000

Mar

RM
1

Cash

Office equipment 2,800

5,000

2,200

5,000

Apr

Balance b/d

5,000

Cash Account
Cash Account
2005

Mar 1
17

Capital
Sales

RM

2005

2,200

Mar

120

RM

Purchase

220

27

31

Fajar Company Ltd. 1,000

Employees'
salaries
300

31

Balance c/d

800
2,320

2,320
Apr

Balance b/d

800

Office Equipment Account

Office Equipment Account

2005
Mar 1

Capital

RM

2005

2,800

Mar

2,800
Apr 1

Balance b/d

2,800

RM
31

Balance c/d

2,800
2,800

Purchase Account
Purchase Account
2005
Mar 5
8

Fajar Company Ltd.

Cash

RM

2005

1,500

Mar

220
1,720

Apr 1

Balance b/d

1,500

RM
29

Stationeries

220

31

Balance c/d

1,500
1,720

Sales Account

Sales Account
2005
Mar 31

Balance c/d

RM

2005

4,070

Mar

RM
13

Murni College

17

Cash

21

SMJ Cooperative

4,070

2,600
120
1,350
4,070

Apr

Balance b/d

Motor Vehicle
Account
Motor Vehicle Account
2005
Mar 15

Bank loan-Suria

RM

2005

20,000

Mar

20,000
Apr 1

Balance b/d

20,000

RM
31

Balance c/d

20,000
20,000

Bank Loan-Suria Account

Bank Loan-Suria Account

2005
Mar 31

RM
Balance c/d

2005

20,000 Mar

RM
15

Motor Vehicle

20,000

20,000
20,000

Apr

Balance b/d

20,000

Discount Received Account

Discount Received Account

2005

Mar 31

RM

Balance c/d

230

2005

Mar

RM

27

Fajar Company
Ltd.

230

230
230

Apr

Balance b/d

230

Stationeries Account

Stationeries Account
2005
Mar 31

Purchases

RM

2005

220

Mar 31

220
Apr

Balance b/d

220

RM
Balance c/d

220
220

Salaries Account

Salaries Account
2005
Mar 31

Cash

RM

2005

300

Mar 31

300
Apr

Balance b/d

300

RM
Balance c/d

300
300

Returned Outwards Account

Returned Outwards Account

2005
Mar 31

Balance c/d

RM

2005

270

Mar

RM
24

Fajar Company Ltd.

270

270
270

Apr

Balance b/d

270

Account
Payable
2005
Mar 24

Returned Outwards

27

Cash

31

Discount received

RM

2005

270

Mar

RM
5

Purchase

1,500

1,000
230
1,500

1,500

Accounts Receivable - Murni

Collage Account
2005
Mar 31

Sales

RM

2005

2,600

Mar

2,600
Apr

Balance
b/d

2,600

RM
31

Balance c/d 2,600

2,600

Accounts Receivable-SMJ
Cooperative Account
2005
Mar 31

Sales

RM

2005

1,350

Mar

1,350
Apr 1

Balance b/d

1,350

RM
31

Balance c/d

1,350

1,350

Armel Company
Trial Balance as at 31 March 2005
Accounts
Cash
Office equipment
Purchases
Motor vehicle
Stationeries
Salaries
Accounts receiveable-Murni College
Accounts receiveable-SMJ Cooperative
Capital
Sales
Bank loan -Suria
Discount received
Returnes Outwards

Debit (RM)
800
2,800
1,500
20,000
220
300
2,600
1,350

29570

Credit (RM)

5,000
4,070
20,000
230
270
29,570