Page 102 - Account 10

3. Importance/Advantages of Trial Balance
i. It helps to check the accuracy of journal & ledger.
ii. It helps to correct the arithmetical errors.
iii. It helps to find out errors of double posting.
iv. It helps for internal audit.
v. It helps to prepare final account.
vi. It helps the management for taking effective decision at right time.
vii. It helps to find the positions of all account in one place.

4. Specimen and Ruling of a Trial Balance
Simply, a trial balance is a statement of the ledger balances taken for a specified
period. It is prepared on a plain paper, not specific. The debit balances are mentioned in
the debit column and the credit balances in the credit column. The specimen ruling of a
trial balance is as follows.
“Trial Balance of Co.
As on ........................”

S.N. Particulars L.F. Dr. Balance Cr. Balance
(1) (2) (3) (4) (5)
Total
i. Since a trial balance is prepared at any given date, its heading should always be
mentioned as:

“Trial Balance of ................. Co.
As on .........................”

ii. The serial numbers of the ledger heading are respectively mentioned in the first
column.
iii. The ledger accounts in respect of the serial number are mentioned in the 2 column
nd
irrespective of the debit or credit balances on them.
iv. Page numbers of the respective ledger accounts are mentioned in the 3 column, if
rd
any.
v. The amount of the debit or credit balance is respectively mentioned in the 4 and/
th
or 5 , columns. But sometimes the debit and credit totals may be mentioned in the
th
respective 4 and 5 columns when trial balance is prepared on total method.
th
th
vi. Finally, the totals of debit side and credit side are determined to see whether the two
totals are equal.
5. Considerations of a Trial Balance
Even though a trial balance is a simple list or statement of ledger balances on a certain
specified date, one should consider the following important points.
i. Since a trial balance is completely based on the ledger accounts, all the ledgers should
be duly prepared.

102 Aakar’s Office Practice and Accountancy - 10 Trial Balance 103