The initial step for preparing a trial balance sheet involves listing all the accounts that have balances in the general ledger, as Accounting Coach states. Next, create the debit and credit columns to the right of the account names, and enter the account balances appropriately.Continue Reading
Enter assets and expenses as debit and liabilities, and enter equity and revenue as credit, as Money Instructor states. Then, sum up the account balances in both the debit and credit columns, and enter the totals below each of the columns. The account totals should be equal. If the figures are not identical, Accounting Coach advises double checking the entries to identify any errors.
Errors that went unnoticed prior to the invention accounting software often resulted from calculation errors or mistakes made when copying the figures from journals. Accounting software has minimized the likelihood of errors in the trial balance sheet by eliminating most of the technical and clerical errors, according to Accounting Coach.
However, accounting software is not perfect. Even when the credit and debit totals are equal, it is important to cross-check the entries to identify any possible mistakes, as Money Instructor claims. There could still be missing transactions, or you could have entered figures in the wrong columns.Learn more about Financial Calculations