Quick answer
What is a trial balance?
A trial balance is a list of ledger account balances used to check whether total debits equal total credits.
Accounting Guide
Trial Balance Explained
This guide helps beginners understand what a trial balance is, why debits and credits should match, and what to check when the totals do not agree.
Formula
Trial balance formula
Total Debits = Total Credits
Why it matters
Why trial balance matters
A trial balance helps detect posting or calculation differences before preparing financial statements. If the debit and credit totals do not match, it is a signal to review the ledger entries and account balances before moving forward.
Worked example
Simple trial balance example
| Account | Debit | Credit |
|---|---|---|
| Cash | 1,000 | - |
| Equipment | 500 | - |
| Capital | - | 1,500 |
This trial balance is balanced because total debits are 1,500 and total credits are 1,500.
Unbalanced totals
What if it is unbalanced?
An unbalanced trial balance means total debits and total credits do not match. The difference should be investigated by checking for missing accounts, wrong-side entries, typing mistakes, or balances from the wrong period.
Common mistakes
Common trial balance mistakes
- Entering an amount on the wrong side
- Missing an account from the list
- Typing wrong digits
- Mixing balances from different periods
- Assuming balanced means completely error-free
Try it
Check your own trial balance
Use the calculator to enter debit and credit balances, compare totals, and see the difference instantly.