Page 62 - F3 -FA Integrated Workbook STUDENT 2018-19

Chapter 4

2.2 Extraction of a trial balance

A trial balance is a list of all ledger balances brought down at a
particular date or point in time.

A trial balance may be extracted or prepared regularly e.g. at each month-end as a
basic check to ensure that there are no obvious errors within the ledger accounts. It
is not a guarantee that the ledger accounts are complete and free from error.

Illustration 2

Trial balance

Using Mylee’s ledger account balances from Example 3, the trial balance is as
follows:

Debit Credit
$ $
Cash 17,300
Capital 20,000
Rent 1,200

Purchases 6,000
Sales revenue 4,000
Receivable – Tayo 3,500
Payable – Tommy 4,000

Delivery van 3,000
Payable – Morrison’s Vans 3,000
––––––– –––––––
31,000 31,000
––––––– –––––––

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