How the extended trial balance is laid out

An extended trial balance is a worksheet. It starts with the trial balance, takes in the year-end adjustments, and ends with the figures for the two year-end statements.

Each account in the general ledger has one row. Across the page there are four headings, and each heading has a debit column and a credit column.

Ledger balances

the trial balance, as it stands before the year-end adjustments

Adjustments

the year-end journals, such as closing inventory and accruals

Statement of profit or loss

the adjusted income and expenses

Statement of financial position

the adjusted assets, liabilities and capital