Trial Balance Template is a ready-to-use template in Excel, Google Sheets, and OpenOffice Calc that enables you to make the statement of all closing balances of ledger accounts on a certain date.
Table of Contents
Trial Balance is a document in which we record the closing balances of all the ledger accounts at the end of the accounting period. It is a statement with all closing balances of ledger accounts on a certain date.
Usually, it is prepared at the end of an accounting period that assists us in the easy drafting of other financial statements.
Thus, preparing this document is the first and foremost step in the preparation of financial statements. (balance sheet, Income Statement, Cash flow Statement, etc)
There are 3 types of Trial Balance:
Unadjusted Trial Balance is the first and foremost document to be prepared for final accounts. You need to prepare it before passing any adjustment entries. In other words, it is prepared to find the unadjusted ledger balances if there are any in our ledgers.
Adjusted Trial Balance is prepared to see whether the adjustment entries passed are correct or not after making all adjustments.
Usually, the Post-Closing Trial Balance will be the same as above. Sometimes due to adjustments or unrecorded entries, the balances of ledgers might change. It helps add the opening balances for the next accounting year.
Follow the below-given steps:
If the totals of debit balances and credit balance do not match, then you need to check the ledger balances again.
We have created a Trial Balance Template in with predefined formulas. This template helps you easily prepare trial balance and find the difference. This template can be helpful to Accounts Assistants, Accountants, and Auditors, etc.
Excel Google Sheets Open Office Calc
Click here to Download All Financial Statement Excel Templates for ₹299.
Note: To edit and customize the Google Sheet, save the file on your Google Drive by using the “Make a Copy” option from the File menu.
In addition to this, you can also download other accounting templates like Profit and Loss Statement, Bank Reconciliation, and Cash Flow Statement.
Let’s discuss the contents of the template.
This template consists of two sections: Header Section and Data Input Section
This section consists of the heading of the sheet with the date of preparation. Furthermore, on the right-hand side, you can see the difference between Debit and Credit amounts.
Furthermore, the formula applied here is =SUMPRODUCT(SUM(B5: B89)-SUM(C5: C89))
This section consists of all the accounting heads from the Ledger.
Insert the closing balances of all the accounting heads into this section. I have included most of them, but if required you can change it as per your need.
The accounting head is as follow:
The trial balance will ensure that the debits are equal to the credits.
This statement can easily identify any mistake in terms of mathematical or typographical errors entered in the ledger. There are some errors where it doesn’t help. They are:
To locate errors in your trial balance you can follow the below-mentioned steps:
Please note that just because our trial balance is balanced, it does not mean that the accounts are correct or that mistakes haven’t occurred.
Therefore, there can be entries that we have missed or items we might have entered in the wrong account.
For example, you might have increased the wrong asset account at the time of purchase. Sometimes, we decrease the wrong expense account while making a payment or the transactions are entered twice.
Thus, you need to keep in mind that the trial balance is not the final document of accounts.
Once the trial balance is prepared, the next step is to prepare other financial statements like Profit and Loss Account and Balance Sheet.
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There are four rules of trial balance:
One should not include income statement accounts such as revenue and operating expense accounts in a trial balance. Moreover, tax accounts, interest, and donations shall not be included in a post-closing trial balance.
Yes, a trial balance includes a total of all the general ledger accounts.
The trial balance will not include all the ledgers that have matching debit and credit totals. In other words, the accounts that are having zero balance will not be considered. i.e. having debit and credit total equal are not considered in the trial balance.
There is a strong relationship exists between them. Missing any of these incorrect balances will provide inaccurate information. Mistakes of an unbalanced trial balance will be carried forward to the Profit and Loss Account as well as the Balance sheet. Hence, we will be unable to get true and reliable results from these Financial Statements.
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