Accounting Examples – Trial Balance

Trial Balance

The Trial Balance, which can be taken at any point in time, lists all ledger accounts and their balances and is used to prove the equality of debits and credits. Assets are listed first followed by liabilities and then owner’s equity. Debit balances are listed in the left column and credit balances in the right column.

The trial balance proves that the accounts balance, but it does ensure that all transactions were entered or entered into the proper accounts. Below is an example of a Trial Balance.

Your Business NameTrial BalanceJune 31, 20XX
Accounts Receivable400.00
Prepaid Rent1,200.00
Accounts Payable$3,000.00
Owner, Capital9,000.00
Owner, Drawing1,000.00
Salary Expense700.00
Misc. Expense300.00

A trial balance is an internal document used only by company employees; it is not meant to be available to persons outside the company.

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