what is trial balance?list various entries of debit and credit side of trial balance?
Trial Balance: A trial balance is a statement prepared with debit and credit balances of ledger accounts to test the arithmetical accuracy of the books. A company prepares a trial balance periodically, usually at the end of every reporting period. The general purpose of preparing a trial balance is to ensure the entries in a company's bookkeeping system are mathematically correct.
Items to be shown on the Debit Side and Credit Side of Trial Balance: Remember that,
1. All assets and expenses are shown on the debit side of a Trial Balance. For example: Cash A/c, Plant and Machinery A/c, Rent A/c, Salaries A/c, Furniture A/c, Discount Allowed A/c, Debtors A/c etc.
2. All liabilities and incomes are shown on the credit side of a Trial Balance. For example: Creditors A/c, Discount Received A/c, Commission Received A/c etc.
Note: It is not possible for us to list down each and every item appearing in the Trial Balance. We have listed some of the examples above. We advice you to go through the NCERT solutions and T.S. Grewal Text Book solutions available on our website for further details and practice.
Items to be shown on the Debit Side and Credit Side of Trial Balance: Remember that,
1. All assets and expenses are shown on the debit side of a Trial Balance. For example: Cash A/c, Plant and Machinery A/c, Rent A/c, Salaries A/c, Furniture A/c, Discount Allowed A/c, Debtors A/c etc.
2. All liabilities and incomes are shown on the credit side of a Trial Balance. For example: Creditors A/c, Discount Received A/c, Commission Received A/c etc.
Note: It is not possible for us to list down each and every item appearing in the Trial Balance. We have listed some of the examples above. We advice you to go through the NCERT solutions and T.S. Grewal Text Book solutions available on our website for further details and practice.