In Bookkeeping, explain what is a Trial Balance

• A list/statement/worksheet of all the account balances of the general ledger at a particular point in time from which the Income Statement and Balance Sheet of a business is drawn up.

• It is prepared in each financial period as a summary of the closing of the previous ledger which proves the arithmetic accuracy of the ledger entry.

• In bookkeeping, this is a useful tool for checking the accounting entries prior to doing the period-end processing.

• Trial Balance reflects all the activity for an account or accounts within a selected date range. It shows the balance of the account at the beginning of the date range, the activity within the date range, and the balance at the end of the date range.

     The accumulated depreciation figures were:

     Motor vehicle   $ 6,100

     Fixtures          $12,200

     Question: 

     Complete the trial balance of A Ltdas at 31/12/2006.            

      Solution: 

      Trial Balance Of  A Ltd As At 31 December 2006