A trial balance format with a full worked example, a quick list of which accounts go on the debit and credit side, how to find a mismatch, and a free Excel trial balance.
Trial balance format with example
| Account | Debit | Credit |
|---|---|---|
| Capital | 5,92,000.00 | |
| Drawings | 48,000.00 | |
| Opening stock | 1,20,000.00 | |
| Purchases | 8,60,000.00 | |
| Sales | 12,40,000.00 | |
| Purchase returns | 15,000.00 | |
| Sales returns | 20,000.00 | |
| Wages | 64,000.00 | |
| Salaries | 96,000.00 | |
| Rent | 48,000.00 | |
| Furniture | 85,000.00 | |
| Machinery | 3,10,000.00 | |
| Debtors | 1,65,000.00 | |
| Creditors | 1,18,000.00 | |
| Bank loan | 1,50,000.00 | |
| Cash in hand | 18,000.00 | |
| Cash at bank | 2,11,000.00 | |
| Commission received | 9,000.00 | |
| Discount received | 4,000.00 | |
| Interest on loan | 12,000.00 | |
| Bad debts | 3,000.00 | |
| Depreciation | 18,000.00 | |
| Electricity | 14,000.00 | |
| Printing and stationery | 6,000.00 | |
| Carriage inwards | 9,000.00 | |
| Power and fuel | 21,000.00 | |
| Total | 21,28,000.00 | 21,28,000.00 |
Debit or credit? The quick list
| Debit side | Credit side |
|---|---|
| Assets (cash, bank, debtors, stock, furniture, machinery) | Liabilities (creditors, loans, outstanding expenses) |
| Expenses and losses (purchases, wages, salaries, rent) | Incomes and gains (sales, commission, discount received) |
| Drawings | Capital |
| Sales returns | Purchase returns |
When the trial balance does not agree
- Re-add both columns.
- Check each ledger balance was carried correctly.
- Look for an amount equal to the difference (a missed balance) or half the difference (a balance on the wrong side).
- If the difference divides by 9, suspect a transposition (54 written as 45).
- A suspense account can hold the difference temporarily, but find the error before final accounts.
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How to prepare a trial balance, step by step
- Balance every ledger account. Find the closing balance and whether it is debit or credit.
- List them. Account name in the first column; debit balance in the debit column, credit balance in the credit column.
- Include cash and bank. From the cash book.
- Total both columns. They must agree.
- Investigate any difference. Use the checks below.
Trial balance with adjustments
Adjustments such as closing stock, outstanding expenses, prepaid expenses, depreciation and provision for doubtful debts are usually given below the trial balance in exam questions. Each adjustment affects two places in the final accounts: for example, outstanding wages are added to wages in the trading account and shown as a current liability in the balance sheet.
Trial balance in accounting software
Software produces the trial balance automatically from the ledgers. It will always agree, because every entry has equal debit and credit, but it can still hide errors of principle or wrong account heads. Review unusual balances, such as a credit balance in an expense account.
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Frequently asked questions
Does a balanced trial balance mean no errors?
No. Errors of omission, wrong account or compensating errors still balance.
Is opening stock debit or credit?
Debit. Closing stock is usually given outside the trial balance and shown in the trading account and balance sheet.
Checked and updated 14 Oct 2026. Independent template site; not tax or legal advice.