Trial Balance and Its Types

Trial Balance and Its Types

The Trial Balance

Before using account to prepare final accounts an attempt is made to prove that total accounts with balances of debit and credit are equal. This evidence of the equivalent balances of credit and debit side is termed as trial balance.


a trial balance is a five-column schedule listing names and balances of all accounts in the ledger and cash book, listed in order in which they appear in the ledger .last two columns are used for listing the balance of different accounts .the debit balance is listed in left-hand columns .and right-hand columns are used for credit balances.


Trial balance are mainly are mainly categorized into two types:
  • Gross trial balance 
  • Net trial balance 


  • It is a list of balances of all ledger accounts and cash book 
  • It does not follow double entry system .it just behaves like working paper. 
  • It can be prepared any time during accounting period. 
  • Arithmetical accuracy from journal posting and ledger maintained. 

Specimen of Trial Balance

Sr. Particular L.F Debit AMT Credit AMT


  • Personal account ;most frequently it is assumed debit balance in the personal accounts stand for debtors and credit balance means creditors.debtors are normally termed as TOTAL DEBTORS OR TRADE DEBTORS OR SUNDRY DEBTORS. Suppliers account i.e creditors account are usually termed as ‘’total creditors’’or trade creditors’’ or sundry creditors.
  • Real accounts; all real accounts carry debit balances the examples would be motar car plant and machinery ,land , also intangible asset such as goodwill patent trademark.
  • Nominal accounts; the accounts of expenses and losses show debit balances and amounts of incomes and gains are classified among credit balances.for instances,
  • Goods or stock a/c debit
  • Purchase a/c debit
  • Opening stock debit
  • Purchase return credit
  • Sales a/c credit

  • The heading of trial balance should show date and name of organization and person fpr whom trial balance is prepared.
  • Debit balances are listed in left hand column
  • Credit balances are listed in right hand column
  • A trial balance proves arithmetical accuracy of the books of accounts so debit and credit columns should be equivalent if they are not equal that means the transactions are not recorded properly in ledger book and hence posting in trial balance has got this defect.
  • A trial balance is prepared in regular intervals depending upon the organization like monthly half yearly or quarterly
  • It is not part of systematic double entry system of book of accounts hence order of accounts does not matter.

Explanation of specimen

The trial balance is just a working paper which has five columns

  • Serial number
  • Heads of accounts or particulars
  • Ledger folio
  • Debit balance
  • Credit balance.


JAIIB Classes by Ramandeep Singh - Get details here

Join 6,000+ readers and get free notes in your email