• A trial balance is a list of the balances of each of the accounts in the general ledger and analysed cash book.
• We say that we extract a trial balance. • The trial balance will alert the business to any errors in the accounts.
• Any balances brought down on the debit side of the general ledger will be recorded on the debit side of the trial balance.
• Any balances brought down on the credit side of the general ledger will be recorded on the credit side of the trial balance.
• The bank balance from the analysed cash book has to be included in the trial balance.
Taking stock A
Go to page 174 of your Activities and Accounts Book to check what you have learned in chapter 24.
stions 1. Copy and fill in the blanks.
a. A trial balance is a list of the balances of each of the accounts in the ___________ ___________ and ___________ ___________ ___________.
b. The trial balance will alert the business to any ___________ in the accounts.
c. Any balances brought down on the debit side of the general ledger will be recorded on the ___________ side of the trial balance.
d. Any balances brought down on the credit side of the general ledger will be recorded on the ___________ side of the trial balance.
e. The ___________ balance from the analysed cash book has to be included in the trial balance.
2. Explain what a trial balance is and when it is completed. 3. Outline three reasons why a trial balance may not balance. 4. What are the first three steps in accounting?
