Trial balance
What is a trial balance?
A trial balance lists every account balance in two columns: debit and credit.
Assets and expenses go in the debit column. Liabilities, capital and income go in the credit column.
If the bookkeeping is right, the two columns add up to the same total.
Example
The debit balances are Bank £3,200.00 and Rent £800.00. The credit balances are Capital £3,000.00 and Sales £1,000.00. Each column adds up to £4,000.00, so the trial balance agrees.
Why it matters
An agreed trial balance proves that the debits equal the credits. It does not prove the books are right: a posting to the wrong account still balances.
Practise it
Practise it nowThe trial balance
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].