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C HAPTER 4.4 Trial Balance. Chapter 4.4 Trial Balance - pg. 112 Figure 4.9: Completed Ledger for Pacific Trucking 2 What would happen if the $200 for.

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Presentation on theme: "C HAPTER 4.4 Trial Balance. Chapter 4.4 Trial Balance - pg. 112 Figure 4.9: Completed Ledger for Pacific Trucking 2 What would happen if the $200 for."— Presentation transcript:

1 C HAPTER 4.4 Trial Balance

2 Chapter 4.4 Trial Balance - pg. 112 Figure 4.9: Completed Ledger for Pacific Trucking 2 What would happen if the $200 for transaction #3 was entered incorrectly onto the credit side of the Bank t-account instead of the debit side?

3 T RIAL B ALANCE Is a listing of the _________ ___________ found in a ______. It is used to see if: total _______= total _______. It _________ find all _____ but it checks if the accounts balance.

4 Internal document so you can use abbreviations and you don’t have to use dollar signs.

5 ____________ A T RIAL B ALANCE Step 1 – Set up the Heading – ________________________ Step 2 – _____________________ in order – Assets, Liabilities & Owner’s Equity. Step 3 – Place the _____________in the __________and the ____________in the _________________. Step 4 – _________ up the 2 columns. Step 5 – _____________the ________and ensure that they ___________. If they do not agree, ________________.

6 W HAT IF THE T RIAL B ALANCE DOES NOT B ALANCE ??? Y IKES !!! Don’t worry! Go through the following steps in order: 1. ___________ the trial balance. 2. Check that you have ___________the balances ______________ correctly. 3. _______________the ledger __________________. 4. Check that there is a __________________ ______________ for each transaction. *_________________________________________!*

7 C RITICAL T HINKING Q UESTIONS The Trial Balance is an important tool for checking that the debits = credits but even if the trial balance shows that debits do equal credits, does this guarantee that the ledger has no errors? Provide an example of a situation were the trial balance shows debits = credits but there is still an error in the ledger.


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