PowerPoint Project

Trial Balance

Trial stability is a declaration containing the balances of all widespread ledger money owed to an enterprise at a sure factor in time. The main objective of trial balance is to check the arithmetical accuracy of the entries posted in the ledger accounts. If the overall debits healthy the overall credits, then the trial stability is stated to be balanced. The trial balance ensures that the financial statements are accurate. Companies can easily check the accuracy of their trial balance by monitoring the debit and credit balances. Without the trial balance, companies would be estimating their income, and would be more likely to see errors in their financial statements. Trial balance helps in the preparation of financial statements. Trial stability no longer does agree, it indicates that there are sure errors. Trial balance acts as a tool for expenditure control. Trial balance helps in rectifying errors. Trial balance assists in comparative analysis. Trial balance helps in preparation of audit report.

Part 2	ABC Company
	Chart of Accounts
	Account Number	Account Name
ASSETS:
	101	Cash
	103	Accounts receivable
	105	Office supplies
	107	Prepaid Insurance
	109	Prepaid rent
LIABILITIES:
	201	Account payable
	203	Salaries payable
EQUITY:
	301	ABC Company. Capital
	303	ABC Company. Withdrawals
REVENUE:
	401	Tuition revenue
EXPENSES:
	501	Salaries expenses
	503	Insurance expenses
	505	Rent expenses
	507	Utilities expenses
	509	Depreciation expenses - Equipment