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TRIAL BALANCE
When posting of all the transactions into the Ledger is
completed and the accounts are balanced off, it
becomes necessary to check the arithmetical accuracy
of the accounting work. For this purpose the balance of
each and every account in the Ledger is put on a list.
The list so prepared is called a trial balance..
Trial Balance may be defined as a statement which
contains balances of all ledger accounts on a particular
date.
FORMAT
Particulars
Trial Balance
As on March 31, 2009
L.F
Dr Balance
(in Rs)
Cr.
Cr Balance
(in Rs)
METHODS OF PREPARATION OF
TRIAL BALANCE
A) Total Method : In this method , after totaling each side of
the ledger account, the respective debit and credit totals
of the ledger accounts are transferred to the respective
sides of the Trial Balance
Particulars
Cash A/c
Capital A/c
Purchases A/c
Total
Trial Balance
As on March 31, 2009
Cr.
Dr Balance Cr Balance
L.F (in Rs)
(in Rs)
25,000
12,000
7,000
20,000
4
Particulars
Cash A/c
Capital A/c
Purchases A/c
Total
Trial Balance
As on March 31, 2009
Cr.
Dr Balance Cr Balance
L.F (in Rs)
(in Rs)
18,000
12,000
20,000
5
TYPES OF ERRORS
The errors can be broadly classified as
ERRORS of PRINCIPLE
CLERICAL ERRORS
These errors arise because of mistakes committed in the
ordinary course of accounting work. These are of three
types:
Errors of Omission
Errors of Commission
10
Compensating errors
11
SUSPENSE ACCOUNT
12