5 Questions
What is the purpose of a trial balance?
To prove that the debit value balances equal the credit value balances
In which column of the trial balance are debit balance values listed?
Debit column
According to Luca Pacioli, what technique is similar to a post-closing trial balance?
Balance sheet
What does an unequal total of the debit and credit column in a trial balance indicate?
There is an error in the nominal ledger accounts
Which historical work first described a process similar to a post-closing trial balance?
Summa de arithmetica
Study Notes
Trial Balance
- The purpose of a trial balance is to verify that the debit and credit balances of all general ledger accounts are equal.
Trial Balance Columns
- Debit balance values are listed in the left column of the trial balance.
Luca Pacioli's Technique
- Luca Pacioli's technique, similar to a post-closing trial balance, is the "proof of the ledger".
Unequal Totals in Trial Balance
- An unequal total of the debit and credit column in a trial balance indicates errors in recording, posting, or calculating balances.
Historical Work on Post-Closing Trial Balance
- The historical work "Summa de arithmetica, geometria, proportioni et proportionalità" by Luca Pacioli first described a process similar to a post-closing trial balance.
Test your knowledge of trial balance with this quiz. Assess your understanding of nominal ledger accounts, debit and credit balances, and the purpose of creating a trial balance in accounting.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
