Accounting report

 (Trial Balance)



Introduction :-

The recording of financial transactions in the general journal is carried out according to the double entry, which states that for each financial transaction there are two parties, a debit and a creditor, and the value of the debiting party should be equal to the crediting party, which means that the total debit amounts in the journal record page are equal to the credit amounts. In sum, the arithmetic balance It is the result of the balanced nature of the double entry, in addition to the fact that the budget equation is based on the principle of balance, so the balance remains in place after the statement of the impact of each financial operation. The data of the property of the economic unit (assets) and the obligations that resulted from it (liabilities) and this is done through preparing the trading account, profits and losses and the statement of the financial position statement. ) If this stage is done correctly and accurately, this leads to the balance of the balance sheet, but this case does not count The number of financial transactions and the consequent recording of restrictions and deportation to multiple and different accounts, and then the balance of these accounts, in addition to the following stages of the accounting cycle, all of this may cause accounting errors, and this in turn leads to delays in preparing and submitting financial statements to the parties that request them, and of course This is not in the interest of the establishment, so accountants are eager to prepare the trial balance



Definition of trial balance:

It is a list of the names of the accounts received in the general ledger, in addition to two columns, one of which is the debit amount and the other is the credit amount. Accounting for registration, deportation and balance


Purpose of trial balance:

The trial balance is prepared periodically, either annually, quarterly, or monthly, and perhaps for a periodic period less than that, and according to the needs of the accounts department and the requirements of the management of the facility, and it may achieve the following purposes

1- Ensuring the correctness of the registration processes in the general journal record, as well as the deportations

to the teacher's record

2- Verify the balances of accounts in the general ledger record

3- Preparing for the preparation of the final accounts and the list of the financial position, so the trial balance is usually prepared at the end of the financial year of the facility and may be close, but it may be required to prepare it on a daily basis, and perhaps the use of computerized accounting systems facilitates the matter

Significantly, and despite the importance and necessity of balancing the trial balance for what it can discover of accounting errors, the balance is not conclusive evidence of the absence of errors, as there are some accounting errors that the balance cannot detect. The trial balance can be prepared in one of three ways, and for each The method is a special method in preparation and specific purposes that it achieves. Therefore, the trial balance appears in three different forms, somewhat differently, according to the method that was used in its preparation.


1- Trial Balance in Totals

In this method, the first column of the trial balance is allocated to a group of debit side amounts of the account, while the second column is allocated to a group of credit side amounts to the account, and the name of the account appears in the third column, while the fourth column includes the page number of the ledger, and finally, each account in the general ledger record is recorded with its name and number His professor's page and the debit side group is moved and a group

The credit side, each in its own column, taking into account the formal aspects when preparing the balance and including mentioning the name of the facility as well as the phrase (trial balance in totals) and finally the date of preparing the balance and after completing the preparation of the trial balance, it should be noted that a group

The first column of the balance, which includes the sum of the amounts of the debit side of the accounts, should be equal to the sum of the second column of the balance, which includes the sum of the amounts of the credit side of the accounts. Not only that, but this should match

The total with the total on both sides of the general journal record and shows the importance of the trial balance in the totals as it is considered one of the important means of verifying the correctness of the journal entries and posting to the ledger record to confirm the process of collecting the debit and credit amounts for each account and then ensuring the accuracy of the posting and finally returning to the journal record to verify the Validity of registration and registration processes


2- Trial Balance with Balances:

The first column in this balance is allocated to debit balances, while the second column is allocated to credit balances, and the account name appears in the third column, while the fourth column includes the ledger page number. Finally, each account in the general ledger record is recorded with its name and ledger page number. The nature of the account and the transactions carried out on it during the year to the first column or

The second, according to the nature of the account and the transactions that took place on it during the year, to the first or second column, and according to the nature of the balance of that account, and also the formality that was mentioned when preparing the trial balance in totals. Column sum must be equal

Debit balances with the total credit balances in this balance, but this total is not required to be equal to the total on both sides of the journal record


3- Trial Balance with Totals and Balances:

In addition to the two previous methods of preparing the trial balance, it can be prepared in a way that includes both methods together, any trial balance with totals and balances.


The trial balance includes four fields:

1- Al-Ars