CBSE Class 11-commerce Answered

The statement of trial balance is prepared by placing the balances of the ledger accounts in the debit or credit columns. The debit balances are placed in the debit column and the credit balances are placed in the credit column.

While preparing a trial balance, the below points need to be considered:

1. The date on which the trial balance is prepared should be written at the top of the statement.
2. The first column is for the ‘Name of the accounts’.
3. The page number of the ledger where the balance appears is written in the second column of ledger folio (L.F.).
4. The third column is for ‘Debit balance’. Here, the debit balances of the ledger accounts, if any, are mentioned.
5. The fourth column is of ‘Credit balance’. Here, the credit balances of the ledger accounts, if any, are mentioned.
6. Accounts of opening stock, assets, purchases, return inwards, expenses and losses have debit balances.
7. Accounts of liabilities, sales, return outwards, incomes and gains have credit balances.
8. Closing stock does not appear in the trial balance as it represents the balance of unsold goods which is already included in the opening stock and purchases.
9. Bank balance can have a debit or a credit balance.
10. The total of both the column is written at the end.