What is trial balance report

Trial balance is an accounting reporting in which balance of all accounting categories are calculated into debit and credit column totals. A correct trial balance should equal the credit and debit, if it doesn’t there are errors in the accounting transactions. Business usually prepare trial balance report at end of every reporting periods like monthly.

How to prepare trial balance report
A trial balance is a point in time report, meaning it is only valid for the specific time on which the report is prepared. It can be prepared for a specific time, but not over a period time. For example. You can prepare a trial balance as of Dec 31st but you cannot prepare it for the last year.

Once report time point is identified, it is important to gather all the balances of every account or categories in your accounting system. Usually assets, expense categories will have debit balance and liability, equity and income categories will have a credit balance. Usually trial balance will have 3 columns. Account or categories name followed by debit and credit column.

Trial balance should always zero out, sum of debits of all accounts must equal the sum of credit of all accounts. If the report doesn’t zero out, then there is mathematical or transactions errors for any of the accounting categories. Accountants usually run trial balance report to check for consistency of the accounting books.

Modern accounting software like QuickBooks, myBooks has the ability to generate trial balance with a click of a button for any point in time. Additionally use of accounting software usually enables systematically correct transactions free of mathematical errors and hence mostly it will zero-out making the sure the accounting system free of mathematical errors.

Sample Trial Balance Report

Trial Balance Report
ACCOUNT ACCOUNT CODE DEBIT CREDIT
ASSETS
Petty Cash 1020  $  4,421.77  $            –
Accounts Receivable 1200  $  6,767.65  $            –
Furniture & Equipments 1730  $     500.00  $            –
LIABILITY
Accounts Payable 2000  $     822.00  $            –
Sales Tax Payable 2240  $            –  $     648.75
EQUITY
Owners Equity 3150  $            –  $  4,000.00
INCOME
Artists Income Coloring 4010  $            –  $  3,675.15
Artists Income Edting 4020  $            –  $  3,350.00
Artists Income Fine art commissioning 4030  $            –  $  6,250.00
EXPENSE
Advertising 6000  $       38.00  $            –
Auto and Truck Expenses 6010  $       28.50  $            –
Bank Fees 6020  $         9.50  $            –
Business Licenses 6025  $       71.25  $            –
Computer and Internet 6030  $       57.00  $            –
Contract Labor 6035  $       57.00  $            –
Dues & Subscriptions 6045  $       37.98  $            –
Insurance 6050  $     285.00  $            –
Meals and Entertainment 6060  $       76.00  $            –
Office Supplies 6065  $       11.40  $            –
Payroll Expenses 6100  $       19.00  $            –
Officers Compensation 6133  $       14.25  $            –
Postage & Shipping 6200  $       28.50  $            –
Printing 6210  $         9.50  $            –
Professional Fees 6220  $       95.00  $            –
Rent 6240  $  1,026.00  $            –
Repairs & Maintenance 6250  $       28.50  $            –
Security 6260  $       45.60  $            –
Telephone 6280  $       48.45  $            –
Travel 6290  $       14.25  $            –
Utilities 6300  $     684.00  $            –
Income Tax Expense 6310  $       24.70  $            –
Purchase Taxes 6785  $     265.10  $            –
Utilies 6990  $     228.00  $            –
TOTAL  $17,923.90  $17,923.90
By | 2019-11-05T06:06:37+00:00 November 5th, 2019|Small Business Accounting|0 Comments

About the Author:

Mathivanan Gowthaman
Mathi Gowthaman is the CEO & Founder of Zetran. He lives in Rhode Island, USA.

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