What I may already know: • How to prepare an analysed cash book. • How to prepare a general ledger.
Learning Intentions
In this chapter, I will learn: • Why a business prepares a trial balance. • How to prepare a trial balance. • Reasons the trial balance may not balance.
• A recap of the three steps in preparing an analysed cash book, general ledger and trial balance.
Key Words: Trial balance Balances brought down (b/d) Extract
WHY DOES A BUSINESS PREPARE
A TRIAL BALANCE? The trial balance is the third step in accounting. The trial balance is a list of all the balances brought down (b/d) from the general ledger and the analysed cash book.
The trial balance allows a business to see if the accounts that have already been prepared are correct.
