Chapter 6

Trial Balance
BBA1113/BBA1114| Fin. Acc. Fundamentals
Prepared by Maniam

FACULTY OF BUSINESS MANAGEMENT AND GLOBALIZATION

BBA1113/BBA1114|Fin. Acc. Fundamentals

Trial Balance
Trial Balance is a list of debit and credit balances.

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FACULTY OF BUSINESS MANAGEMENT AND GLOBALIZATION

BBA1113/BBA1114|Fin. Acc. Fundamentals

A trial
balance
will look
like this:
The
double
entry
system
Details

Debit

Credit

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FACULTY OF BUSINESS MANAGEMENT AND GLOBALIZATION

BBA1113/BBA1114|Fin. Acc. Fundamentals

Trial balance

Trial Balance is extracted at the end of an accounting period after closing all
the ledgers.
There will be two types of balances in the ledger , i.e. Debit brought down
balances and Credit brought down balances.

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FACULTY OF BUSINESS MANAGEMENT AND GLOBALIZATION

BBA1113/BBA1114|Fin. Acc. Fundamentals

Trial Balance

Trial balance shows the arithemetic accuracy of recordings in the ledgers.

However, One can make mistake in the recordings in the ledgers and yet
the trial balance can balance.

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FACULTY OF BUSINESS MANAGEMENT AND GLOBALIZATION

BBA1113/BBA1114|Fin. Acc. Fundamentals

Trial Balance

The types of errors that can take place in trial balance can be classified as
follow:

Error of omission

Error of compensation

Error of principle

Error of commission etc.

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FACULTY OF BUSINESS MANAGEMENT AND GLOBALIZATION

BBA1113/BBA1114|Fin. Acc. Fundamentals

Trial Balance

Error of original entry

Complete reversal of entries

Transposition errors

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