Trial Balance. The information for ledgers comes from balance sheets. -This means it is already in...
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Transcript of Trial Balance. The information for ledgers comes from balance sheets. -This means it is already in...
![Page 1: Trial Balance. The information for ledgers comes from balance sheets. -This means it is already in balance. As you make changes to the Ledger, it is possible.](https://reader035.fdocuments.us/reader035/viewer/2022062801/56649e7b5503460f94b7c65d/html5/thumbnails/1.jpg)
Trial Balance
![Page 2: Trial Balance. The information for ledgers comes from balance sheets. -This means it is already in balance. As you make changes to the Ledger, it is possible.](https://reader035.fdocuments.us/reader035/viewer/2022062801/56649e7b5503460f94b7c65d/html5/thumbnails/2.jpg)
Trial Balance
• The information for ledgers comes from balance sheets.-This means it is already in balance.
• As you make changes to the Ledger, it is possible that mistakes are made.
• To see if you made any mistakes, you should use a Trial Balance.
![Page 3: Trial Balance. The information for ledgers comes from balance sheets. -This means it is already in balance. As you make changes to the Ledger, it is possible.](https://reader035.fdocuments.us/reader035/viewer/2022062801/56649e7b5503460f94b7c65d/html5/thumbnails/3.jpg)
Trial Balance
• Add up all of the debit and credit balances. If they agree, the ledger is in balance.
• If they DO NOT agree, the ledger is out of balance.
![Page 4: Trial Balance. The information for ledgers comes from balance sheets. -This means it is already in balance. As you make changes to the Ledger, it is possible.](https://reader035.fdocuments.us/reader035/viewer/2022062801/56649e7b5503460f94b7c65d/html5/thumbnails/4.jpg)
Trial Balance
![Page 5: Trial Balance. The information for ledgers comes from balance sheets. -This means it is already in balance. As you make changes to the Ledger, it is possible.](https://reader035.fdocuments.us/reader035/viewer/2022062801/56649e7b5503460f94b7c65d/html5/thumbnails/5.jpg)
How to Take a Trial Balance
![Page 6: Trial Balance. The information for ledgers comes from balance sheets. -This means it is already in balance. As you make changes to the Ledger, it is possible.](https://reader035.fdocuments.us/reader035/viewer/2022062801/56649e7b5503460f94b7c65d/html5/thumbnails/6.jpg)
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![Page 7: Trial Balance. The information for ledgers comes from balance sheets. -This means it is already in balance. As you make changes to the Ledger, it is possible.](https://reader035.fdocuments.us/reader035/viewer/2022062801/56649e7b5503460f94b7c65d/html5/thumbnails/7.jpg)
Trial Balance
• Using a calculator:
-Add up the debits and subtract the credits. If the calculator says 0, the ledger is in balance.-If the calculator does not have 0 on it, the ledger is out of balance.
![Page 8: Trial Balance. The information for ledgers comes from balance sheets. -This means it is already in balance. As you make changes to the Ledger, it is possible.](https://reader035.fdocuments.us/reader035/viewer/2022062801/56649e7b5503460f94b7c65d/html5/thumbnails/8.jpg)
Importance of the Trial Balance
• Trial Balances are important. Mistakes should be identified early.
• Accountants should make sure that their ledger is always in balance.
• Computers help with this.
![Page 9: Trial Balance. The information for ledgers comes from balance sheets. -This means it is already in balance. As you make changes to the Ledger, it is possible.](https://reader035.fdocuments.us/reader035/viewer/2022062801/56649e7b5503460f94b7c65d/html5/thumbnails/9.jpg)
Trial Balance out of Balance
• What happens if the Trial Balance becomes out of balance?
• If it is not in balance, there is at least one error.-Account identified wrongly,-Addition or subtraction done wrong,-Missing a step.