Answers.com > Wiki Answers > Categories > Business & Finance > Business and Industry > Business Accounting and Bookkeeping > What are the steps in preparing a trial balance?

Other contributors have said "What are the steps to preparation of trial balance?" is the same question as "What are the steps in preparing a trial balance?" If you believe that these are not asking the same thing and should be answered differently, click here

What are the steps in preparing a trial balance?

In: Business Accounting and Bookkeeping, Accounts Payable, Accounts Receivable [Edit categories]

Answer:

The trial balance is a worksheet on which you list all your general ledger accounts and their debit or credit balance. It is a tool that is used to alert you to errors in your books. The total debits must equal the total credits. If they don't equal, you know you have an error that must be tracked down.

In a trial balance you list all

Assets
Liabilities
Owners Equity (Stockholders Equity)

Basically you use your accounts from your General Ledger.

Contributor:

JosephAllen2005

First answer by JosephAllen2005. Last edit by JosephAllen2005. Contributor trust: 113 [recommend contributor ]. Question popularity: 5 [recommend question].

[report abuse]

Can you answer these Business Accounting and Bookkeeping questions?

	What will increase one asset and decrease another asset without affecting liabilities or owner's equity?	Answer it!
	What are the problems involved in the use of profit maximization as the goal of the firm?	Answer it!
	How does current assets and current liabilities work together?	Answer it!
	Why the extended trial balance is used to make adjustments to accounts?	Answer it!
	Why a firm should adopt historic cost as its basis of evaluation over a long period of time?	Answer it!

Relevant answers:

What is the difference between preparing a trial balance and preparing a balance sheet?
Trial Balance is a statement showing the closing balances of all the ledger accounts and Balance Sheet is a statement showing the closing balances of Assets and Liabilities.
How do you verify balances on the trial balance?
verify the balances of all ledger accounts
What is the purpose of preparing extended trial balance?
The purpose of preparing extended trial balane is to make adjustments that had not been made when a normal trial balance was extracted. In other word to make adjustments that were omitted for the...
How does the post trial balance differ from the adjusted trial balance?
Post is used at the beginning of the month where trial balance is the balance of your financial statement at the end of the month.
The uses of trial balance to firm the uses of trial balance?
ghanta

What are the steps in preparing a trial balance?

Can you answer these Business Accounting and Bookkeeping questions?

Relevant answers:

Related ads:

Home

Answer these

Featured guides

Site

Company

Community

Updates

International sites