Description:
Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step towards the preparation of financial statements. It is usually prepared at the end of an accounting period to assist in the drafting of financial statements. Ledger balances are segregated in debit balances and credit balances. Asset and expenses accounts appear on the debit side of the trial balance whereas liabilities, capital and income accounts appear on the credit side. If all accounting entries are recorded correctly and all the ledger balances are accurately extracted, the total of all debit balances appearing in the trial balance must equal to the sum of all credit balances.
Purpose of a Trial Balance
- Trial Balance acts as the first step in the preparation of financial statements. It is a working paper that accountants use as a basis while preparing financial statements.
- Trial Balance ensures that every debit entry recorded, a corresponding credit entry has been recorded in the books in accordance with the double entry concept of accounting. If the totals of the trial balance do not agree, the differences may be investigated and resolved before financial statements are prepared. Rectifying basic accounting errors can be a much lengthy task after the financial statements have been prepared because of the changes that would be required to correct the financial statements.
- Trial balance ensures that the account balances are accurately extracted from accounting ledgers.
- Trial balance assists in the identification and rectification of errors.
Reference: https://accounting-simplified.com/trial-balance.html
The report was designed in such a way to present in various of Grouping Option:
1. This Year Only
2. Last Year Only
3. This Year vs Last Year
4. This Month Only
5. This Month and This Year
6. This Month vs Last Month
7. This Month vs Last Month and This Year vs Last Year
8. Months Comparison
9. Years Comparison
10. This Year vs Months Comparison
11. This Year vs Location
12. This Month vs Location
13. This Year vs Job
14. This Month vs Job
15. This Year vs Department
16. This Month vs Department
The report came with 2 default formats:
1. Trial Balance Listing: Vertical designed with total 2 columns of presentation. Suitable for Grouping Options that have lesser column output. Such as Grouping Options: 1 to 6.
2. Trial Balance Listing - 6 Columns: Horizontal designed with total 6 columns of presentation. Suitable for Grouping Options that have potentially more column output. Such as Grouping Options: 7 to 16.
Grouping Option: 1. This Year Only
Grouping Option: 2. Last Year Only
Grouping Option: 3. This Year vs Last Year
Grouping Option: 4. This Month Only
Grouping Option: 5. This Month and This Year
Grouping Option: 6. This Month vs Last Month
Grouping Option: 7. This Month vs Last Month and This Year vs Last Year
Grouping Option: 8. Months Comparison
Grouping Option: 9. Years Comparison
Grouping Option: 10. This Year vs Months Comparison
Grouping Option: 11. This Year vs Location
Note: The location filtering would be applied for this grouping option. You may filtered the desirable location list to present in this report (Due to the limitation of report layout width, therefore please generate the report by segregated to different locations if you'd more locations)
Grouping Option: 12. This Month vs Location
Note: The location filtering would be applied for this grouping option. You may filtered the desirable location list to present in this report (Due to the limitation of report layout width, therefore please generate the report by segregated to different locations if you'd more locations)
Grouping Option: 13. This Year vs Job
Note: The job filtering would be applied for this grouping option. You may filtered the desirable job list to present in this report (Due to the limitation of report layout width, therefore please generate the report by segregated to different jobs if you'd more jobs)
Grouping Option: 14. This Month vs Job
Note: The job filtering would be applied for this grouping option. You may filtered the desirable job list to present in this report (Due to the limitation of report layout width, therefore please generate the report by segregated to different jobs if you'd more jobs)
Grouping Option: 15. This Year vs Department
Note: The department filtering would be applied for this grouping option. You may filtered the desirable department list to present in this report (Due to the limitation of report layout width, therefore please generate the report by segregated to different jobs if you'd more departments)
Grouping Option: 16. This Month vs Department
Note: The department filtering would be applied for this grouping option. You may filtered the desirable department list to present in this report (Due to the limitation of report layout width, therefore please generate the report by segregated to different jobs if you'd more departments)