4.4 Trial Balance

Once the account balances have been found in the ledger, we can use the information to complete a trial balance. The trial balance lets us know whether or not our ledgers are in balance. If the debit and credit numbers are the same then our accounts are in balance. If the debit and credit numbers are different then our accounts are out of balance.

Using our prior example from Pacific Trucking, let’s complete a trial balance.

PACIFIC TRUCKIN
TRIAL BALANCE
2 JULY 2010
Accounts / DEBITS / CREDITS
Bank
A/R – W. Caruso
A/R – R. Van Loon
Supplies
Trucks
Equipment
Bank Loan
A/P – Dini Bros
A/P – Packham Products
B. Rissen, Capital

Notice that there are no dollar signs and that single and double underline rules still apply.

Many times trial balances end up being “out of balance”. This means that the accountant has to recheck the accounts and ny adding/subtracting that may have been done. If the trial balance is “out of balance” the accountant may want to:

1.  Re-add the trial balance columns

2.  Cross-reference the trial balance figures against those of the T account.

3.  Recalculate the account balances

4.  Make sure that note of the transactions have been missed anywhere

Practice: pg 102-103 # 2,3

*Show to me upon completion to check work, then complete assignment below. This assignment is summative!*

Pg 111 # 5, 6 (do not hand in transaction analysis sheets)

Chapter 4 Assignment Rubric

P 111-112 #5, 6

Name: ______

Level 1 / Level 2 / Level 3 / Level 4
Knowledge of content (KU) / Demonstrates limited knowledge of content / Demonstrates some knowledge of content / Demonstrates considerable knowledge of content / Demonstrates thorough knowledge of content
Understanding of content (KU) / Demonstrates limited understanding of content / Demonstrates some understanding of content / Demonstrates considerable understanding of content / Demonstrates thorough understanding of content
Application of knowledge and skills in familiar contexts (App) / Applies knowledge and skills in familiar contexts with limited effectiveness / Applies knowledge and skills in familiar contexts with some effectiveness / Applies knowledge and skills in familiar contexts with considerable effectiveness / Applies knowledge and skills in familiar contexts with a high degree of effectiveness
Use of planning skills (TIPS) / Uses planning skills with limited effectiveness / Uses planning skills with some effectiveness / Uses planning skills with considerable effectiveness / Uses planning skills with a high degree of effectiveness
Use of processing skills (TIPS) / Uses processing skills with limited effectiveness / Uses processing skills with some effectiveness / Uses processing skills with considerable effectiveness / Uses processing skills with a high degree of effectiveness
Expression and organization of ideas and information in written (electronic) form (Comm) / Expresses and organizes ideas and information with limited effectiveness / Expresses and organizes ideas and information with some effectiveness / Expresses and organizes ideas and information with considerable effectiveness / Expresses and organizes ideas and information with a high degree of effectiveness
Use of conventions, vocabulary and terminology in written (electronic) form (Comm) / Uses conventions, vocabulary and terminology of the discipline with limited effectiveness / Uses conventions, vocabulary and terminology of the discipline with some effectiveness / Uses conventions, vocabulary and terminology of the discipline with considerable effectiveness / Uses conventions, vocabulary and terminology of the discipline with a high degree of effectiveness