Trial Balance Excel Template is a ready-to-use template that enables you to make the statement of all closing balances of ledger accounts on a certain date.
What is a Trial Balance Statement?
Trial Balance is a document in which we record the closing balances of all the ledger accounts at the end of the accounting period. Trial Balance is a statement with all closing balances of ledger accounts on a certain date.
Usually, the Trial Balance is prepared at the end of an accounting period that assists us in the easy drafting of other financial statements.
Steps to Prepare a Trial Balance
- First of all, segregate the Ledger balances into debit balance and credit balances.
- As per the accounting rules, assets and expense accounts will appear on the debit side of the trial balance.
- Liabilities, capital and income accounts will appear on the credit side.
- Enter all the segregated and extracted debit and credit balances of the ledger accounts into the trial balance sheet.
Thus, the total of all debit balances appearing in the trial balance should be equal to the sum of all credit balances.
If the totals of debit balances and credit balance do not match, then you need to check the ledger balances again.
Trial Balance Excel Template
We have created a Trial Balance Template 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.
Let’s discuss the contents of the Trial balance Template.
Contents Of Trial Balance Excel Template
This template consists of two sections:
- Header Section
- Data Input Section
1. Header 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.
The formula applied here is =SUMPRODUCT(SUM(B5: B89)-SUM(C5: C89))
2. Data Input Section
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:
- Petty Cash
- Cash In Current A/C
- Cash In Savings A/C
- Accounts Receivable
- Bad Debts Reserve
- Stock Inventory
- Advance Paid Expenses
- Office Supply
- Deposits with Utility Companies
- Notes Receivable
- Organization Expense
- Depreciation – Vehicles
- Furniture and Fixtures
- Depreciation – Furniture and Fixtures
- Depreciation – Equipment
- Depreciation – Buildings
- Other Intangible Assets
- Accounts Payable
- Sales Tax Payable
- Other Taxes Payable
- Accrued Wages
- Unearned Revenue
- Accrued Income Taxes
- Credit Card
- Bank Loan
- Notes Payable
- Equity Share of Owner
- Owner’s Drawing Account
- Common Stock
- Additional Paid-In Capital
- Preferred Stock
- Retained Earnings
- Sales Returns and Allowances
- Income on other Investments
- Gain / Loss on Sale of Assets
- Purchase Returns and Allowances
- Cost of Goods Sold – Materials
- Labor – Cost of goods sold
- Direct Expenses – Cost of Goods Sold
- Indirect Expenses – Cost of Goods Sold
- Bad Debt Expense
- Bank Charges
- Charitable Contributions
- Commissions Expense
- Contract Labor
- Credit Card Fees Expense
- Delivery Expense
- Dues and Subscriptions
- Interest Expense
- Office Expense
- Operating Supplies
- Payroll Taxes
- Permits and Licenses
- Professional Fees
- Property Taxes
- Vehicle Expenses
- Income Taxes
The trial balance will ensure that the debits are equal to the credits.
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.
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.
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