Trial Balance

• A Trial Balance is a summary of all the

ledger balances outstanding as on a
particular date.
• All debit balances are shown on one side
and all credit balances are shown on the
other side.
• Trial Balance must tally.
 Trial Balance
• Trial Balance shows the
correctness in recording the
transactions and also shows the
summary of all accounting heads.
 Trial Balance
• According to Double Entry Book-Keeping
System, every transaction has two equal
and opposite effects ; which we show in the
form of Debits & Credits.
• On the basis of same principle , we prepare
Trial Balance. Hence Trial Balance must
tally.
 Trial Balance
• All Assets & Expenses/ Losses
have Debit balance.
• All Liabilities & Incomes / Profits
have Credit balance.
 Format of Trial Balance
Particulars Debit (Rs) Credit (Rs)

Capital XXX

Salaries XXX

Discount Recd. XXX