Trial Balance: Formation Layout - SS1 Accounting Lesson Note

The trial balance is a list of all the accounts in a company's accounting system and their corresponding balances. The format of the trial balance is a simple and straightforward way to organize a company's accounting information and ensure that the financial records are accurate. 

The format of the trial balance is typically a two-column table, with the debit balances listed in one column and the credit balances listed in the other column. The accounts are usually listed in the order in which they appear in the company's chart of accounts.

The format of the trial balance can vary depending on the specific needs of the company or the accounting software being used. However, the basic structure remains the same, with each account listed and its balance included in either the debit or credit column.

Example of a simplified trial balance

In this example, the accounts are listed in the order of their appearance in the chart of accounts. The accounts with debit balances are listed in the left-hand column, while the accounts with credit balances are listed in the right-hand column. The total debit and credit balances are then calculated at the bottom of the table to ensure that they are equal.

Folio 

Debit

Credit

Cash

 

4,000

 

Accounts Receivable

 

2,500

 

Supplies

 

300

 

Equipment

 

3,000

 

Accounts Payable

   

1,200

Unearned Revenue

   

500

Owner's Capital

   

8,100

Total

 

9,800

9,800

Thus, the above statement simply represents a list of balance extracted from the preparation of the ledger accounts.