Posting Journal Entries to General Ledger Account, Page 15

Preparing a Trial Balance

Here are the steps to prepare a trial balance: 

1. Determine the balance of each account in the ledger. 
2. Enter the same amount in the same side (debit or credit) of the trial balance (Note: when the standard account form is used, the balance of each account appears in the balance column). 
3. Add the debit column amount and write the total on the debit side of the trial balance. 
4. Add the credit column amount and write the total on the credit side of trial balance. 
5. Compare the totals under the debit column and credit column. They must be equal. 
6. If the totals under debit and credit are not equal, it indicates that an error has occurred in journalizing, posting, or preparing the trial balance. 
7. Identify the error and correct it before proceeding to the next step in the accounting cycle.

The trial balance does not provide complete proof of accuracy of the journal and ledger, but does indicate whether the debit and credit are equal or unequal. If they are unequal, there is an error somewhere that needs to be corrected.