Precision and Equality— Trial Balance

Another important matter in accounting is the trial balance. The normal balances of accounts are being used in this, that's how imperative to master the basic. In trial balance, the balances of debit and credit sides must be equal. Sometimes, you'll have an equality but that doesn't mean it's correct. So yes, yes, yes, yes check.

There's always these three-line header in the trial balance, first line for company/business name, second for the word 'Trial Balance', and third for the date. This is not an optional part, it's necessary to write this three-line header before anything else.

Arrange the accounts systematically— assets, liabilities, capital, withdrawal, revenue and expenses. Place the amounts according to its normal balances. Put a peso sign on the first amount and total on both debit and credit sides. Then, the total debit and credit must have double rule. Don't ever forget the double rule and peso sign if you don't want a deduction. Be precise and seek for equality! (Click photo for more information)