Trial Balance

Question 1

What is a Trial Balance?

Answer 1

Summarises all the account balances for the financial statements and shows whether total debits equal total credits. shows all accounts with their balances, assets first, then liabilities and shareholders equity

Question 2

What’s the layout of a trial balance?

Answer 2

Title, Name of firm etc.
Account name
(Asset accounts)
(Liability Accounts)
(Shareholders Equity Accounts)

Question 3

Example:

Answer 3

Trial balance
Account Name Debit Credit
Cash 10.800
Land 5.000
Accounts Receivable 2.300
Building 6.000
Supplies 2.000
Share Capital 20.000
Accounts Payable 2.000
Revenue 6.300
Advertisement Expense 700
Rent Expense 1.500
Totals 28.300 28.300