CBSE Class 11 Accounting-Trial Balance

Scroll down for PDF

CBSE Class 11 Accounting-Trial Balance. Students can download the specific chapters from the CBSE and NCERT text books from Please refer to the attached file to access the chapters. The books and specific chapters have been collected by the tutors on studiestoday for the benefit of CBSE students. They can access these chapters anywhere and use them for their studies.

Accounting-Trial Balance

5.1 Introduction

The accounting process which you have learnt so far is regarding the recording of transactions on the basis of accounting principles in the journal proper and other subsidiary books, posting them from the journal to the ledger, and balancing the ledger accounts. You have also learnt that when a simple transaction is journalised some accounts are debited and some other accounts are credited and the totals of debits and credits are equal. It means that when the transactions are posted in the ledger the totals of debts and credits should also be equal. A balance is the tool to check the arithmetical accuracy of the fact that the transactions have been correctly recorded in the journal posted in the ledger, and the ledger balances have also been correctly calculated. In this chapter you will learn the meaning and preparation of trial balance. You will also learn about the different types of accounting errors and the method of their rectification.

5.2 Meaning of Trial Balance

A balance is a statement which shows the balances, or the totals, of debits and credits of all ledger accounts prepared for the purpose of verifying the arithmetical accuracy of the posting of ledger accounts. When all the accounts of an organisation are balanced off and such balances are put in a columnar statement having debit balances on one side and credit balances on the other side, such a statement is called ‘a trial balance’. The trial balance is prepared, generally, at the end of the accounting period. However, it can be prepared at the end of any period of time say monthly, quarterly or half-yearly. It must be kept in mind that the agreement, or equality, of the two sides of a trial balance is not conclusive proof of the correctness of the accounts.

The trial balance is an important step in the accounting process and forms the basis of preparation of the final statements. The balances given in the trial balance are used for the preparation of profit and loss account and balance sheet of an organisation. Following is the format of a trial balance.

5.2.1 Objectives of Preparing a Trial Balance

A trial balance is prepared to meet for the following objectives

(i) To have the balances of all the ledger accounts at one place so that the necessity of going through the pages of the ledger is avoided for finding out those balances whenever required

(ii) To verify the fact that every transaction has been recorded as per the rules of debit and credit in the journal and the ledger through its agreement

(iii) To help in locating the errors

(iv) To help in the preparation of financial statements.

5.3 Preparation of Trial Balance

A trial balance can be prepared by using any one of the following two methods.

(i) Totals Method

(ii) Balances Method

5.3.1 Totals Method

In this method the totals of debit side and credit side of the ledger accounts are shown in the two columns of the trial balance and the balances of the different ledger accounts are not used. The sum totals of the debit and credit columns of the trial balance are arrived at. If these totals are equal then it is the check of the arithmetical accuracy of the accounts. Preparing a trial balance by totals method is not very popular.


Please refer to the link below - CBSE Class 11 Accounting-Trial Balance


Click on the text For more study material for Accountancy please click here - Accountancy

Latest NCERT & CBSE News

Read the latest news and announcements from NCERT and CBSE below. Important updates relating to your studies which will help you to keep yourself updated with latest happenings in school level education. Keep yourself updated with all latest news and also read articles from teachers which will help you to improve your studies, increase motivation level and promote faster learning

CBSE Board Exam Date Sheet of class 10th and 12th

The Central Board of Secondary Education (CBSE) released the Date sheet of Class 10 and Class 12th 2020 examination on the official website The board examination of Class 12 will be conducted from 15 February to 30 March 2020, while the board examination...

CBSE Counseling for Board exam 2020 starts today

The 23rd psychological Counseling starts 1st February (today) for The Class10 and Class12 CBSE students and their parents, by the Central Board of Secondary Education (CBSE).    This Counseling service is cost-free and this counseling service will be available every...

Simple tips to Excel in Examinations

We are entering the last quarter of the Academic Session. With examinations just around the corner, I am sure all of us are carrying a mixed bag of Stress, Excitement, and Anxieties!! So, first and foremost- Let’s be Positive and Futuristic! It’s most important to...

Studies Today