Trial Balance

Trial Balance/ unadjusted trial balance

After prepare general ledger, we will prepare trial balance. A trial balance is a bookkeeping worksheet that lists the balances in each general ledger account. The debit balances are listed in a column with the heading “Debit” and the credit balances are listed in another column with the heading “Credit.”  Most trial balances will not list any account having a zero balance.  The total of each of these two columns should be identical.

Trial Balance Format

The initial trial balance report contains the following columns:

1. Account number
2. Account name
3. Ending debit balance for each account (if any)
4. Ending credit balance for each account (if any)

Note: Total debit must equal total credit (Dr=Cr).

Our note: common stock refer to equity/capital