2.2 Trial Balance

• Meaning of a trial balance
• Importance of a trial balance for a business entity
• The format of a trial balance
• Preparing a trial balance from ledger balances
• Errors that do not affect the trial balance
• Errors that affect the trial balance
• Correcting errors in a trial balance
• The suspense account

• explain the importance of a trial balance for a business entity
• prepare a trial balance for a business entity
• analyse the errors in a trial balance
• correct errors in a trial balance
• embrace the importance of a trial balance to a business

“Why is a trial balance important to a business?”

“How are errors in a trial balance corrected?”

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1. The meaning of a trial balance
   40 min · 1 practice tasks · quiz
   Explain what a trial balance is and what it checks.
2. Importance of a trial balance
   40 min · 1 practice tasks · quiz
   Explain why a trial balance matters to a business.
3. The format of a trial balance
   40 min · 1 practice tasks · quiz
   Set out a trial balance with its heading and columns.
4. Preparing a trial balance
   40 min · 1 practice tasks · quiz
   Extract ledger balances and prepare a trial balance.
5. Errors that do not affect the trial balance
   40 min · 1 practice tasks · quiz
   Identify errors that leave the trial balance in agreement.
6. Errors that affect the trial balance
   40 min · 1 practice tasks · quiz
   Identify and trace errors that make the totals disagree.
7. Correcting errors in a trial balance
   40 min · 1 practice tasks · quiz
   Correct errors using double entry and the suspense account.
8. Trial balance practice and review
   40 min · 1 practice tasks · quiz
   Prepare a trial balance, analyse errors and correct them.